What a GREAT move....

I am not going to blame myself for abstenance from blogging for quite a while. I was busy, rushing to complete the tasks meant for the coming seminar at Penang by the end of the month.

I am quite busy today first with trying to send the demonstration kits to my colleagues in Thailand and Penang. It took me 1/2 a day to do so because of errors here and there. Then there is this afternoon meeting for the department. What is strange to me all these while is that my boss gets me and my colleague to present to our own people.

It was much later then I realize how much the market dropped, and I have no idea until I saw the charts. So may be it is a good idea not to read my charts too often as it corrupts the BIG picture.


Fig 1 STI Daily Chart

STI has fallen much, thanks to Japan's earthquake and Nuclear explosion. In fact, the earthquake didn't do much, it is the Nuclear explosion that gave the killing blow. It is quite rare to see Nikkei fallen by more than 1,000 points, but I have seen STI dropped by 90 points before.

STI has met its minimum object and went further, my prediction came true. It is now still holding onto the negative gradient of the Gann Grid lind but it is coming close to the apex, so its decision time soon, will STI reverse up?

One thing that I laugh about is the comments from the analyst talking about global economical melt down, they even talk about Singapore economy heading for bear market when STI hits 2,700+ level. Even my boss took out an article today detailing how much potential business losses from this earthquake. I won't want to say it up front, but I disagree.

It is not that we will in bear market at 2,700. I am sure we are already in one now considering my daily moving averages have already crossed. In addition, I am seeing this present move from 24th Feb to 9th Mar as the 4th wave, meaning we are in the fifth wave DOWN now. There will be more to come.

But will it be VEY BAD? Let's see, a 23.6% Fibonacci projection downward will lead to around 2,898. I think that will be the end of fifth, if not, 2,853 which is the 38.2% Fibonacci projection. This will complete either the C of a 3 waves pattern or 3rd of the 5 wave pattern.

Economically, a disaster is an economical event. The destruction means the need for replenishment, demand for goods increases especially when the scale of destruction is so great. I would see it as opportunity.

The scary part of course is the US treasury Bonds. 10 years ago, my teacher ever told me that Japan was the biggest buyer.There was this once USA pissed japan off and when it was trying to sell its bonds, they was no buyers, Japan sat on the fence.

If Japan lacks the money to rebuild, it might end up forced to sell the bonds. This will get the US economy to its knees and probably a bear market in USA.

So let's just hope that Japan has enough money.