Europe rebounded strongly

European markets rebounded strongly on Thursday on hopes of a new bailout deal for Greece as Germany bows to huge global pressure, especially from the US, for debt relief for Greece.

 

Many European nations that are smaller and poorer than Greece such as Slovakia, Latvia and Lithuania that have faced crisis themselves, forced to swallowed the austerity medicine are against a new bailout deal for Greece.

 

 

Pensioners and other poor people in these smaller countries just wonder why they are being asked to pay to bail out their far richer Greek counterparts that have been enjoying their Mediterranean sun all these years.

 

 

 

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A bad day for China

Major Asian Markets

A horrible day for the Asian Markets. Both Shanghai SSE composite index and Hong Kong Hang Seng index dropped close to 6%. But I still maintained that this is only a higher degree correction. The assets bubble is not burst yet. My date for the bubble to burst is 2017, not now.

Dow (17,515)

Dow dropped 261 points (-1.5%), wave 3 of iii has started. The drop is expected to be faster with steeper gradient. Dow still has to drop another 1,500 points to complete its major wave (6), another 8.5% to go.

FBMKLCI (1,695)

KLCI dropped 16 points (-1%), not that bad compared to other Asian markets and despite the Ringgit has dropped to another new low. Most likely it is because KLCI has dropped much longer and much earlier due to 1MDB and UMNO's problems.

I maintained my reading for KLCI and hoped that the 1673 level can hold. That is only another 22 points to go.

As usual, my reading can be wrong and if KLCI does drop below 1673 level, the next possibility is that the major wave 4 is not yet completed.

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'OXI' (No) stormed to victory with 61.31% of the vote

Greece - It is 'OXI'

The Greeks have rejected the bailout terms of the their creditors and put the country closer to an exit from the 19-nation Eurozone.

 

 

Will the creditors accept Greek Prime Minister Alexis Tsipras's revised loan proposal at the Eurozone leaders' summit on Tuesday (7th July) ? Given that there have been some tough words on both sides before Sunday's referendum, it may be more difficult to find common ground. Another difficult hurdle is the fact that Spain, Portugal and Ireland have swallowed their respective bailout terms bitterly before this, why should Greece be treated differently?

 

Just wait and see what is next. 

 

Major Asian Markets

 

Japan Nikkei 225 lost about 2%, Hong Kong dropped 3.18% and Singapore dropped only 0.29%. Shanghai SSE Composite has been on its own all this while. It gained 2.4% to close at 3775 which is 24.8% lower than its high of 5023 on 5th June, last month.

 

 

FBMKLCI closed at 1717, dropping 17 points about 1%. I am still thinking of a wave b rebound.

 



 

 

 

Major European Markets

 

Markets dropped around 1.4% to 2%, not really that bad, most likely the Greece factor has already been discounted to a certain degree.

 

 

Dow (17,683)

 

Dow dropped only 46 points (-0.26%) at the close, but still on course for its 12% major wave (6) correction. From its May's high of 18,312, it has dropped 3.4%.

 

 

 

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Wealth Daily - Greece's Keynesian Experiment

Greece's Keynesian Experiment.

" ......... Anyone who had significant money in a Greek bank was not wise. There was plenty of warnings, really for the last several years. ........"

" ......... The people there should have already left if possible. ........"

 

 

" .......... They should not have had their money in Greek bank ........"

 



 

 

 

" ..... They should have had some cash for emergencies, and I am sure some gold or silver wouldn't have hurt either .... " 

 

 

 

 

" ........ Most importantly, they should not have trusted their government. ......"

 



 

 

 

" ...... they should not have become reliant on government handouts ....... "

 



 

 

 

Click 'Greece's Keynesian Experiment' for the article from Wealth Daily.

 

 

Knowing very well a 'No' vote would mean financial chaos for Greece and would see Greece being ejected from the Eurozone and yet Prime Minister Alexis Tsipras, for his own political survival, urged Greeks to vote for 'No' for 'living in Europe with dignity'.  

 

Just wonder what 'dignity' he is talking about, his or Greece's.

 

 

Latest From Germany :

Greece could exit Eurozone 'temporarily'.

 

In 2012, Eurozone could not afford 'Greece Exit' to happen. But since then Europe has constructed significant firewalls to separate the Greeks from the rest of the single-currency bloc and it is time to chop off this liability.

 

Click 'Euro Firewall' for reports.

 

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Putrajaya - It is a political sabotage

The first reply from PM Office - It a political sabotage.

Click 'The Malaysian Insider - 1MDB' for the reports.

 

 

Wall Street Journal - The reports are based on 'solid' and 'reliable' documents that "had been shared with the Malaysian attorney general, with others in the government so they've been seen by all and also the prime minister".  

  

Click 'The Wall Street Journal - 1MDB' for the reports.

 

 

Putrajaya must follow Singapore's style - take WSJ to court. No need to talk so much.

 

 

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C4 from The Wall Street Journal

 

Click 'The Wall Street Journal - 1MDB' for the report.


FBMKLCI (1,729)

KLCI remained calm, it dropped only 4 points (-0.23%) to 1729 at the end of the 1st trading session on Friday.

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FBMKLCI Rebounded on Fitch's possitive comments.

FBMKLCI (1,727)

KLCI gained 21 points (+1.25%) on Tuesday after Fitch Rating Agency maintained its rating for Malaysia's 'long-term foreign currency issuer default rating' (IDR) unchanged at A- and local currency at A, with outlook revised upward from negative to stable.

My wave count for KLCI remained the same, it is having its wave (ii) of major wave 5 correction.

 

 

Option 1 - With the surge, it is possible that KLCI has completed the wave a of its wave (ii) and wave b rebound has started. I am looking for about 100 points rebound for wave b.

 



 

 

Option 2 - Since the down trend in the last 3 months has formed 7 waves, it may be unlikely in view of the 1MDB and UMNO problems, but technically there is this possibility that wave (ii) has ended and wave (iii) has started.

 



 

 

And if I take into account that Dow is heading for a 12% correction to 16117 level, the option 2 mentioned above looked even more unlikely, unless my reading for Dow is wrong and Dow is not forming its major wave (6) at this moment.

The focus now is on Greece's Referendum on Sunday, 5th July, to decide whether the people of Greece will accept or reject the proposed bailout offer. If the outcome is 'no' to the bailout, Greece will have no choice but to leave the EU and to revert its currency from Euro back to 'Greek Drachma'. This is going to be a disastrous outcome for Greece.

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