Knowing who and respect he big brother

SSE came down strongly 35% and bound back up to 23% from the it top.  That was what I also means by how it went up, how it come down.  A steep up side and a steep down side that took place on China market.  Political involvement, non-mature investors.........all lead to the fast track roller coaster ride on the China market. 

Almost half of the stocks are freeze from trading.  Those who hold more than 5% of the company shares are not allow to sell their stock over the next 6 months.  The new rules took effect.  It stopped the indices from falling?  So is China market really to go for another bull charge?

I prefer China market to have some consolidation over here instead of another steep up side.  Why?   http://achua138.blogspot.sg/2015/06/second-half-shanghai-market.html  At the same time, look up when and how the freeze counters are release.....and the 5% share holders are able to..........

Greece referendum, 61% of the voters voted "No".  They rejected the creditor proposal debt settlement plan.  But now, Greece PM Alexis Tsipias seems to accept the creditors pension plan........and now they asked for €53.5bn from the creditors.  Things are not going to be easy.  EU is not about German.  It have France, Finland............ The referendum, then the result of "No" and now accepted most of the creditors proposal plan with additional counter proposal plan and asking for a higher third bailout........it is not so simple about promised, it is about "trust".  What will happen if....and what will happen if.......  Most of the people is looking at the positive side.  But as a trader, I should be on guard.  Everything goes smooth, market will go up.  But if things go wrong especially Greece is force to exit euro zone, market will react. 

Knowing who and respect the big brother.  Yes, the US.  Federal Reserve chairwoman Janet Yellen has repeated her view on Friday that the central bank is likely to start raising interest rates this year.  I will be monitoring this carefully.  How and what Fed does before the announcement of rate increase take place.  And how the market respond before physical announcement / actual rate rise.  Take note on this - this year the Asia and Europe markets have gone into a correction but the US yet. 

China market and Greece

Despite political involvement, central banking cutting the lending interest rate and lowering reserve ratio, China market just continue to plunge.  If I look at the SSE and A50 charting, it shows "fear". 

China is a non-mature market.  They are more retail investors/traders than the institution investors/traders.  That is the problem.  The greed of this retail investors/traders pushed the market up by 160% in 14 months time.  These two numbers were absolutely not acceptable.  Look at the China economic numbers, example of their GDP.  They just couldn't fix in on one and the other. 

Balancing all these plus what the charting is telling, SSE and A50 probably need a 30% correction.  Trade what I see.  Look for signal when it come close to this level.

Greece is a sideline player inside the Euro zone.  However, this player can become the key player inside the main show. 

The people of Greece vote and select their own government.  They expect this government to do something for them.  Greece borrowed money from IMF........  To receive the fund, Greece government needs to compromise some of their country policies.  If we look deeper, in fact certain percentage of this fund is just like left pocket in, right pocket out to origin.  Nevertheless, if Greece does not receive this fund from the creditor, what happen is bank, pensions fund........as what we are seeing right now. 

Greece PM Alexis Tsipias declared a referendum on 5-Jul to decide whether to accept or reject the creditor proposal debt settlement plan.  Tons of EU members and others described PM Alex Tsipias move as "gamble".

Let us look at Iceland.  Years back Iceland encountered similar problem.  The Iceland government wrote off their external debts through a call for referendum.  This external debts then featured as public debt instruments and sold it to British and Dutch banks and the respective public who were tempted by the high interest rate. 

Is Greece trying to apply what Iceland did?  Greece's main creditor is German bank.  The bigger concern over here is - if Greece will to leave the Euro zone upon debt default, others may follow as and when they are unable to repay their debt.  By then, people may lost confident on EU and the EURO may become historical.

Let's see how things go over this Sunday.  On guard and monitor the situation.