Straits Times Index   

STI

We have just passed the tail end of the storm yesterday. Normally it is very stormy with high winds at the tail end before the storm hits land and subside.

 

Hi, ivory coast.

Maybe we are in the eye of the storm.

When the eye leaves us, do we expect heavier winds?

Or are the winds going to blow in the opposite direction?

I am sitting tight, just watching the show.

 

Hope my GA (ghost analysis) works this time as TA and FA readings are no longer reliable when spirits are in control.

 

 

Frankly, it's a good sign that aunties and uncles have given up on the market .....

 

When market is at dizzy heights ..... the appearances of too many aunties and uncles worries me .....

 

But now that aunties and uncles have given up ...... hmmmm .....

 

By next week the STI shud fly. Uncles and aunties will pai por tor and feed the hungry ghosts on 27 August. Hopefull these spirits will not disturb the STI after this grand treat.

Good luck and trade wisely.

 

** Peaking ..... market climbs, but at a slower pace ..... volume decreases .....

     Bottoming ..... market declines, but at a slower pace ..... volume decreases .....

 

** For this week, the scenario is likely to be (2) above .....

 

** Note that volume is very very low now ..... i.e. transactions have reduced significantly ..... thus, panic selling has also reduced significantly .....

 

** To short, will need buyers to buy from you at higher levels and then you buy back at low levels ..... BUT if the volume has reduced significantly, such that not many are buying from you ..... then what's there to buy back ?   Anyway, where to find sellers to you at that lower levels, if in the first place, there's so little buying ? 

 

Note again ..... volume has really reduced SIGNIFICANTLY .....

 

 

 

 

Paulson is the biased referee and wants to give Benanke a free penalty kick.

If Bernanke misses all hell will break loose. 

 

Even Nikkei is recovering!!! Market Indices	Current	Change	% Change		Date
NIKKEI 225 INDEX	15,920.19	+18.85		+0.12%	22-08-2007
HANG SENG INDEX	21,998.71	+269.36		+1.24%	22-08-2007
STRAITS TIME IDX	3,275.80	+47.14		+1.46%	22-08-2007

 

Thanks Pinnacle for the effort in posting the indices.  Cheers to a very hardworking SJ participant like you.  If the share mkt goes into a free fall,  the US economy will be badly hit. Good news could be released possibly earlier before the next Fed mtg scheduled for 18 September 2007?  Let's leave the manouevring to the very intelligent people in Fed .

 

There's hope that STI is able to sustain the uptrend today.

HSI opened positively too. So if Nikkei can recover, STI should be able to close higher.

 

Market Indices	Current	Change	% Change		Date
NIKKEI 225 INDEX	15,872.09	-29.25	-0.18%		22-08-2007
HANG SENG INDEX	21,993.93	+264.58		+1.22%	22-08-2007
STRAITS TIME IDX	3,286.67	+58.01		+1.8%	22-08-2007
Singapore Sector Indices	Current	Change	% Change		Date
ALL S'PORE IDX	889.14	+13.66		+1.56%	22-08-2007
FINANCE IDX	2,339.37	+43.05		+1.87%	22-08-2007
PROPERTY IDX	1,369.75	+18.64		+1.38%	22-08-2007
MANUFACTURE IDX	1,304.24	+7.00		+0.54%	22-08-2007
COMMERCE IDX	1,030.57	+15.04		+1.48%	22-08-2007
HOTL/RESTRT IDX	1,317.69	+3.11		+0.24%	22-08-2007
MULTI-INDUST IDX	2,493.76	+43.69		+1.78%	22-08-2007
TRP/STR/COMM IDX	1,606.93	+36.91		+2.35%	22-08-2007
CONSTRUCTION IDX	570.62	+7.59		+1.35%	22-08-2007
Hong Kong Sector Indices	Current	Change	% Change		Date
S&P/HKEX GEM	1,409.72	+6.14		+0.44%	22-08-2007
HSI-FINANCE	34,684.49	+429.35		+1.25%	22-08-2007
HSI-UTILITIES	35,231.36	+250.51		+0.72%	22-08-2007
HSI-PROPERTIES	25,288.82	+265.79		+1.06%	22-08-2007
HSI-COM & IND	12,176.92	+152.90		+1.27%	22-08-2007
HANG SENG C E I	12,544.69	+235.94		+1.92%	22-08-2007
HANG SENG C C I	4,214.37	+62.77		+1.51%	22-08-2007

 

QUOTES:

Singapore shares are likely to open lower Wednesday after Wall Street ended an erratic session mixed as investors waited for further action from the US Federal Reserve.

Fed Chairman Ben Bernanke met Senate Banking Committee Chairman Christopher Dodd and Treasury Secretary Henry Paulson to discuss possible moves to address turbulence in the financial markets.

Dodd said Bernanke isn't satisfied with Wall Street's response to his efforts to stabilize markets torn by anxiety about shrinking credit. Dodd, after a meeting with Bernanke and Paulson, said policymakers plan to use "all tools available" to complete its mission.

But Richmond Fed President Jeffrey Lacker said the central bank's policy must be guided by fundamentals, rather than market swings -- indicating that a cut in the more significant federal funds rate might not be among the tools the Fed plans to use.

The Fed unexpectedly cut its discount rate by 50 basis points last Friday, helping relieve investor concerns over the worsening crisis in the US subprime mortgage market.

On Tuesday, the Straits Times index closed down 93.72 points or 2.8 percent at the day's low of 3,228.66.

Phillip Securities managing director Loh Hoon Sun said investors will remain cautious as credit worries persist.

"The Fed has already reduced its discount rate. It could take further action if that is not enough," he said.

Loh said he is advising clients to slowly accumulate blue chips with strong earnings visibility such as Keppel Corp and SembCorp Industries and which are less volatile than banks.

Banking shares fell on Tuesday amid heightened concerns that the US credit crisis will negatively affect banks' fee-based income in the second half of the year.

 

BEIJING (Reuters) - China raised interest rates on Tuesday for the fourth time this year to stabilize inflation after consumer prices rose in July at the fastest pace in more than a decade.

The People's Bank of China (PBOC) said it was raising the rate that banks pay for one-year deposits by 27 basis points, to 3.60 percent, and the corresponding benchmark for lending rates by 18 basis points, to 7.02 percent from 6.84 percent.

The increases go into effect on Wednesday.

Although the timing was a surprise, the action itself was not despite turbulence in global markets that has prompted the Federal Reserve to cut its discount rate and hold out the prospect of a reduction in the federal funds rate.

Most economists had forecast an increase, both to anchor inflationary expectations and to reduce the incentive for savers to take their money out of the bank -- where real deposit rates are deeply negative -- and pile into the surging stock market.

"The PBOC is concerned about falling real deposit rates spurring the flow of funds out of deposits into equities. We don't think this is a response to strong growth," said Ben Simpfendorfer, an economist with Royal Bank of Scotland in Hong Kong, said.

Although the economy expanded 11.9 percent in the second quarter from a year earlier, Lin Songli, an analyst with Guosen Securities in Beijing, agreed that, by raising lending rates less than deposit rates, the central bank was signaling it was not intending primarily to slow the pace of growth.

"The move is mainly targeting inflation, and the authorities might have reached a consensus that investment growth is not a big problem now," Lin said.

Consumer prices surged 5.6 percent in the year to July, the fastest pace since early 1997, because of a spike in the cost of pork, eggs and other foods.

Although non-food inflation fell to 0.9 percent in July, policy makers are concerned that price increases are already rippling out across the economy. 

 

STI is just enjoying some sky diving.

Better keep the heads down until she gets bored, return to normalcy and goes mountain climbing again.....

 

can't be help, now market just need the slightest reason to fall.. Anyway, don't think we are in a bear market. Bungee jump market more likely. Even bears don't dropped down so fast.....

 

Slippery Slope;

We are on a dangerous sliding slope right now because if the Fed decides to fix the credit crisis via multiple rate cuts it is basically sending the message that  the Fed is going to do what it can to create the level of confidence to enable the credit market to function as if it was 2004.

The long term consequences of this action would be disastrous as low rate cuts coupled with bad business practices are what got us into this crazy situation right now.

 

Most markets are down probably due to a cat 5 Hurricane Dean. 

 

 

 

Game over.

We need US to perform miracle tonite, else...

NIKKEI 225 INDEX	15,901.34	+168.86		+1.07%	21-08-2007
HANG SENG INDEX	21,729.35	+133.72		+0.62%	21-08-2007
STRAITS TIME IDX	3,228.66	-93.72	-2.82%		21-08-2007
Singapore Sector Indices	Current	Change	% Change		Date
ALL S'PORE IDX	875.48	-21.46	-2.39%		21-08-2007
FINANCE IDX	2,296.32	-94.88	-3.97%		21-08-2007
PROPERTY IDX	1,351.11	-26.02	-1.89%		21-08-2007
MANUFACTURE IDX	1,297.24	-18.55	-1.41%		21-08-2007
COMMERCE IDX	1,015.53	-22.61	-2.18%		21-08-2007
HOTL/RESTRT IDX	1,314.58	+6.75		+0.52%	21-08-2007
MULTI-INDUST IDX	2,450.07	-58.12	-2.32%		21-08-2007
TRP/STR/COMM IDX	1,570.02	-37.29	-2.32%		21-08-2007
CONSTRUCTION IDX	563.03	-16.04	-2.77%		21-08-2007
Hong Kong Sector Indices	Current	Change	% Change		Date
S&P/HKEX GEM	1,403.58	-9.95	-0.7%		21-08-2007
HSI-FINANCE	34,255.14	+254.99		+0.75%	21-08-2007
HSI-UTILITIES	34,980.85	-184.56	-0.52%		21-08-2007
HSI-PROPERTIES	25,023.03	+354.87		+1.44%	21-08-2007
HSI-COM & IND	12,024.02	+52.80		+0.44%	21-08-2007
HANG SENG C E I	12,308.75	+344.98		+2.88%	21-08-2007
HANG SENG C C I	4,151.60	+46.64		+1.14%	21-08-2007

 

newmoon is right on this.....market is de-coupling from economic fundamental.......and i never learnt...<sign>

newmoon Veteran

Posted: 20-Aug-2007 12:23

x 0 x 0

Capitalism is a game of DECEPTION at the highest level.The dicount rate cut was already known by the insiders as reported in the asian wall street journal on friday morning but the annoncement was only made before the market open in USA. There are a lot of sharks out there so be careful . Markets look very simple -heads or tails but the variables affecting the market are too many to be counted .If the federal reserve is opaque what do you think of the speculative penny stocks.?.Only the very cunning or lucky ones survive. Charts are just another silly tool to fool the masses At turning points they are useless.The key to success in investing is information which only a privelegd few have access to.The masses are born suckers.( if you  cannot suck milk when you are a baby you are likely to die}.To be forewarned is to be forearmed.Your friendly predatory banker and broking houses area dangerous animals.

 

I hope fed cut some more rate tonight

 

Euro open in sea of RED too!!!

Time to siam...

^ATX	ATX	Austria	4,347.95 3:57PM SGT	6.98 (0.16%)	Components, More
^BFX	BEL-20	Belgium	4,088.97 4:12PM SGT	28.05 (0.68%)	More
OMXC20.CO	OMXC20.CO	Denmark	472.38 4:12PM SGT	3.11 (0.65%)	Components, More
^FCHI	CAC 40	France	5,349.06 4:12PM SGT	50.32 (0.93%)	More
^GDAXI	DAX	Germany	7,367.00 3:57PM SGT	40.53 (0.55%)	More
^AEX	AEX General	Netherlands	500.32 4:12PM SGT	4.25 (0.84%)	More
^OSEAX	OSE All Share	Norway	526.64 3:57PM SGT	5.23 (0.98%)	Components, More
^MIBTEL	MIBTel	Italy	30,038.0000 4:12PM SGT	147.0000 (0.49%)	Components, More
^IXX	ISE National-100	Turkey	99.06 4:59AM SGT	0.00 (0.00%)	More
^SMSI	Madrid General	Spain	1,569.42 Aug 20	3.74 (0.24%)	Components, More
^OMXSPI	Stockholm General	Sweden	374.86 4:12PM SGT	4.81 (1.27%)	More
^SSMI	Swiss Market	Switzerland	8,535.46 4:12PM SGT	58.87 (0.68%)	More
^FTSE	FTSE 100	United Kingdom	6,041.40 4:12PM SGT	37.30 (0.61%)	Components, More