Stocks jump more than 3.5%

Stocks in Europe and US rally after global central banks (Europe, US, Japan, British Canada ....... ) announced coordinated action to shore up liquidity in the financial system by reducing their borrowing rates. Market sentiment was also lifted by China announcement to reduce bank reserve levels. This is the first time in three years China eased her monetary policy. It is possible that China has started to feel nervous about the European debt problems.

In fact China Shanghai market has been drooping in the last 28 months since its July 2009 high of 3412 points. SSEC closed today session at 2333 for a 31% drop since July 2009.


Is this the turning point for SSEC? It is possible that China stocks may go in a different direction.

For US and Europe, the major wave C remains.
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World Stocks Rose On New European Hope

US markets opened strongly, gaining 2.8% to 3.5% after one hour of trade.

European bourses gained 3% to 5% at this moment

Asian bourses closed with about 2% gain before the US markets opened.

Looked rather bullish on the hope that the European leaders would unveil new measures to resolve the debt problems.

This is only a technical rebound or short covering rally to me. Any rebound will be short-lived.



This is one of those mini-mini rebound wave. A small one to two days mini wave (iv) rebound as shown above. I don't think the European debt crisis has hit bottom when it has just started to threaten France and Germany.

The key words now is to protect your capital.

Protest against "Peaceful Assembly Bill" by FAC

FAC - Freedom of Assembly Campaign will be holding a protest on 26th November, 2.00pm at KLCC .

There will be a candlelight vigil at Dataran Merdeka at 8.00pm on the same day.

"Just Wear Yellow" FAC Coordinator said.


Massimo From Robert Kuok

Syed Mokhtar's Gardenia has a new competitor.

Dow - Don't you see the bear

At a glance, all the charts looked almost the same. The shape is the same except the magnitude of advance and decline. Dow has been holding very well despite of all its problems. Dow has given back only 21% of what it has gained from March 2009's low to April 2011's high.

FTSE has given back 34%

DAX -51%

CAC40 is the worst at -79%

In Asia Singapore has given back 33%

Australia -47%

Taiwan also -47%

Hang Seng -54%

All the charts have only 3 waves up since the 2009 bottom except Hong Kong. (Personally I would like to push the the wave 1-2 of Hong Kong to the left to be the last down wave of the 2007-2008 bear run). The 2009-2012 rebound is definitely a B wave and we have gone through one-third way of C. We are at the early stage of wave 3 of C at this moment.

In Europe, so far 5 governments have toppled, Greece, Italy, Portugal, Spain and Ireland, but the debts problems remained. Hedge funds are having good times moving from country to country hammering the Government securities. "See you at 7" seemed to be the target.

Next year, Europe will need to raise more than US$1.5 trillion to refinance maturing bonds at a much higher rate. With growing debts and the proposed austerity measures, that will lead to a shrinking GDP in general. Unemployment rate will go up, consumption will go down, even China may go into recession due to a slow down in its export. US economy is already in 'deep shit', I really can't find any reason for the market not to go south.



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Peaceful Assembly Bill #@%?&#@

The Government has promised a political reform to allow "peaceful gatherings without permit" by scrapping Section 27 of the Police Act that requires a permit before holding any assembly.




A new "Peaceful Assembly Bill" was table today in the Parliament. Among the salient points of the bill are :

- No street protest are allowed
- Organisers must give a 30-day notice to the OCPD
- Those below 21 cannot organise an assembly
- An assembly cannot be held within 50m of a prohibited area
- The police may arrest without warrant organisers or participants who do not comply with the restrictions and conditions imposed.
- The Home minister may amend any sections in the Bill
- The Home Minister is allowed to make regulation for better execution of the Bill.
- Those who fail to adhere to the regulation can be imposed with a fine not exceeding Rm 10,000.00


How to have anti lynas protest??
Children under 15 are not allowed to say 'NO' to lynas, can be fined up to Rm10,000.00



Really #@$%&$#@%^&*?<#%&@%@#$%$@&?@#$%!&?

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Dow - Finally confirmed. It is wave 3 of C

Buyers was able to keep the Dow that has only 30 component stocks above the lower support line but the S&P 500 has punched through the lower support as shown below.


The punch-through with a gap is even more glaring for Nasdaq. Finally it can be confirmed that we are at wave 3. We are in fact in wave iii of (iii) 0f i 0f 3, still a long way to go, hopefully we can see the bottom by December 2012.


Wave 2 is uaually the last chance for the hardcore bull to get out before the very damaging wave 3 runs wild.


STATISTIC

We are always the No.1 in this sort of thing.



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Dow - Lower resistance broken

Dow finally moved out of the wedge on the lower end, chances is getting higher that the October high is the end of wave 2. With the mini waves i-ii, 1-2 and a small one dot-two dot, if this is the right interpretation, the next down trend will have to be a dynamic sharp drop to confirm that the wave 3 is unfolding.


I still cannot completely rule out the second option as the last mini wave e of the a-b-c-d-e corrective wave can either stop short or overshot. Try to look for confirmation next week.


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