Emergency Cut Rates

The Federal Reserve Board of America cut an emergency 0.75 to halt panic selling around the globe. Stocks around the globe suffered losses for about weeks now with the action intensifying the past two days even india sensex has to stopped 1 hour to stop trading and allow some air in. The action was swift Dow which has no trade of Monday set for a sharp lower open but upon fed releasing the news futures jump.... Opening bell saw almost the same thing panic selling but throughout the session it shows resilience. The Dow ended the day -128.11, Nasdaq -47.75, S&P 500 -14.69. Will this really help some question that if this continues will the fed end up with nothing to cut? Subprime, bear market, correction, recession or whatever times are going to be harder for the market....

Summary for week 3

Indices around the globe hitting multi month lows and testing psychological levels, Dow testing the 12,000 level, nikkei broke through the 14,000 support level, hang seng also broke the 25,000 level... With US president announcing the stimulus package with FED Bernanke supporting... Personally i think that will not help... but help is better than no help.... Hope it doesn't complicate the situation more. Data this week: CAD retail sales, interest rate announcement and crude oil inventories .JPY trade balance, GBP GDP and MPC meeting minutes(exp 9-0)....USD unemployment claims.... NZD interest rate statement.

Equity Update

15 Jan-Japan Nikkei 225 index finally broke the support line of 14,000 closing the day with 13,972... Meanwhile closer to home the singapore stock index is closing in the psycological 3,000 level ending the day with 3,154... US retail sales came in at -4% a sign that subprime is spreading to consumer spending? For european side, the monthly ZEW economic sentiment came in at 41.7 v 37.8. Today on the FX side GBP shine the most, gaining some foothold against major curriences especially the US, meanwhime USD/JPY fell hit bottom to 106.80s with no end and support in sight, EUR/JPY fall to 158.00s, GBY/JPY fall till 210.70s, carry trade in some pressure now....

Living on credit

Living on credit is not a new idea it started back when credit cards started.. Today people around the world live on credit(just visa or damn it!!!)... Now last week a report on credit reported that US default payment raises to trillion mark. Is it a worrying figure or should we dismiss it to say that is a trend waiting to happen? Do we earn more that we spent or spend more than we earn. This has spark up many authors to write books and get rich scheme. The power of spending is more than the power of earning or vice versa? With inflation going up, gold and commodities going up the world is it really going to a credit crunch? The power of money is decreasing each and every day... Today farming is different... Face with drought and increasing operational cost, the world is also facing supply problem now. This trend will continue down the road. Demand is more than supply now. To sum up, we are now really facing a supply problem, can we solve it before alien attacks us...just joking, good day everybody...

A new perspective

I recently knew 2 friends one male another female...they are both younger than me born in the 90s... After a few times together i came to realise a new trend not only apply to them but in the society as well... my male friend is one who believes everything i say and try to follow me without his own opinion... while the girl is one who is hardworking,thrifty maybe a bit witty. They represent a new trend i call man weakness/women power. My friends around me i saw this trend quite often... With the obama/clinton race hotting up, one can't helps to feel that if clinton wins, the human race will wake up to a new face... Female president going to saudi arabia/the world to shake hands and sign deals will they allow anyway? Just joking.... Back to topic as the race continue(man vs women) more ideas and trends will come alive this world would be more interesting or complicated?

Summary for week 2

Gold futures briefly rose above $900 an ounce an all-time high before pulling back Friday as growing worries of a U.S. recession prompted uneasy investors to keep buying the precious metal, with the stock market still gripping with fear from the subprime mess and US FED chairman say will act "decisively" + "timely" and promises to cut rates in futures. One question is the fed really getting to the bottom of subprime or just a time wasting technique.. With billion already written down are we going to see worse of it to come? One thing is clear the FED is only concern about inflation and avoiding recession balancing the economy and not solving subprime... it can only be solved by banks and all financial brokerage involved(but no they keep coming out more writedowns)*. Ok to sum up let's see more data coming out next weak to see if there are more weakness to come...

*This are my analysis and not supposed to be used as guidelines. Maybe i am wrong so dont follow the above to trade.

Gold back off highs

After a few day rallies, PRECIOUS METAL(GOLD) finally backs off its high of 890s. What that it means for us traders....hmmm lets pounder. Another news, GBP slide to new low against USD, is weakness spreading to european markets? Wow with two central bank interest rate announcement tomorrow traders wil take extra cautious step no more lazy trading after so much action in many areas.

Thought of the Day...

A thought of the day... Nikkei 225(Japan stock market) has endured a three-day losing streak both in closing for 2007 and opening 2008... What has been the 2nd biggest economy of the world is really under pressure or otherwise.... Portfolio managers, hedge funds, asset managers, traders around the world is really in a position for a move.. History prove that near new year the stock market will have its bull run... 1 week in is that so? Well to sum up, the old saying... expect more whippy market move this year round....

Experts says: Emerging markets like India and Brazil is a good choice...

Comodities corner: New safe haven? Well with crude and gold spiking new highs every now and then. Let's look at some comodities companies... Rio tinto BHP Bilton etc.... shall we buy? Well i am not really expert in this corner...... I will try my best to understand them...

Things to look this week: Wed: EUR GDP. CAD Chief economist speaks and crude oil inventories. Thursday:Interest rate statement:GBP and EUR and the accompany statement(important) and FED charman bernake speaks(big market move expected)... And some US retail department reporting their sales also important...

Last one: Hang in there guys... Good luck trading everybody...

Smmary for the week 1 2008

Well what can i say... 2008 first week has been quite okay everthing is going according to plan and i need the motivation and strength to carry on (Fighting Spirit)...

Financial corner: Japan Nikkei 225 first trading day drop 616.37(4%). Hang Seng up 2.35% on friday... STI up 40.730 (1.99%). Asia side doing okay apart from Japan again maybe is too much holiday for them start so late... Dow's trade on friday was a dissapointing one... Before the opening bell, NFP(a leading economic indicator) was 18K vs 115k....and unemployment change was 5&vs expected 4.8%. Immediately after that futures drop sharply... If that was'nt bad enough... NASDAQ mostly unaffected by supprime showed that it indeed is what goes around comes around.... futures start with a disappointing start and end the day with -98.03(-3.77%). Never in my trading life have i seen such a large drop in nasdaq. S&P 500 not spared either it is now testing 1400 trendline if this goes EUR,CHF & GOLD will shoot for the moon...

Bonds is also under fire, 2, especially 5 is testing dangerous grounds, 10 years also hanging loose... let's see what the FED does...

Forex corner: EUR and CHF doing best, GBP okay okay but showing some signs of weakness(maybe GBP/JPY unwinding...)... AUD still affected by AUD/JPY. NZD one of the risker currencies also didn't perform much better... Best Bet for now is EUR/AUD... Carry trade stay out but look for good deals as it may snap around anytime.

Oil Breaks through

Finally after much resistance, crude finally breaks through $100 a barrel in first day of 2008 trading day. Much uncertainty hit the market hit the market as traders wait for the FOMC minutes later in the day.

We buy banks...

The year in review.
First stop: England, "Singapore's state investor Temasek Holdings TEM.UL said on Monday it would pay 975 million pounds for a stake in Barclays representing 2.1 percent of the existing share capital.
Temasek said it would pay a further 1.5 billion pounds to increase its stake after Barclays' planned merger with ABN AMRO ."

Second stop : Switzerland, SINGAPORE government investment company that manages the city-state's foreign reserves said Monday, Dec 10, that it will own around 9 percent of Swiss banking giant UBS AG following its investment of 11 billion Swiss francs (US$9.75 billion; €6.65 billion; S$14billion) in the lender.

Third Stop: USA, Temasek, a Singapore state fund, is buying $4.4 billion of Merrill Lynch & Co Inc shares at $48 a share, according to a term sheet on the Merrill Lynch Web site.

Guess which is next? the buy goes on...