Click on the images to enlarge.
I picked three stocks to support hypothesis of liquidity is tightening i.e. unwinding of emerging markets.
Couple of things:
- The common theme of the three charts is declining volume.
- Stock price hit upper trend resistance (Axiata for an example).
- To breakthrough .618 of Fibo statistically is very tough, odds are normally not too good with declining volume.
- In Tanjong case, twice failure attempts to breakthrough $ 16. If they cannot go up, going the opposite direction is a logical move. May come back to rock solid $ 13 support(low risk trading range play)
- Most are trying to paint nice fundamental justification for Genting but breaking down from the trend is not something we should take it likely.
- If the US $ is truly strengthening, I can buy into explanation of unwinding of carry trade. Speculators/investors will have to liquidate something to cover losses.
- China market correction is another piece of hint of liquidity tightening. Another 100 points down from Shanghai Composite Index 2800, China market will be in a bear market by a strict definition.
- Gosh, why am I talking about technical analysis again?
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