Bad news: we’re still in a downtrend.  Good news: it’s very possible that the index is now forming a bullish reversal pattern.
After months of waiting and watching the PSEi toss and turn in a sea of volatility, we see a pause in the downtrend as the index has been forming what looks like a double [...]

After seeing a bearish outside day, the USD has performed as expected.  We expected the uptrend of the USD to be broken and correct to lower levels.  But how low can it go?
The first thing that contributed to the correction was, as we said earlier, the bearish outside day.  The second thing that we can [...]

Recapping the highlights of the previous week:

The U.S. government bails out Citigroup (NYSE: C). Another bailout ? What about those automakers?
Sirius XM radio (Nasdaq: SIRI) subscribers wish they had an iPhone application. Them too? Steve Jobs can’t save GM and [...]

Yes, I believe so. Dollar bulls should worry.
 
This is a very serious issue. I’ve been attending a lot of seminars from bank analysts to economists and they’ve been cheering about the bullish dollar. I can’t blame them.
 
Looking at the 3 year weekly chart of the dollar peso, the currency has travelled from a low [...]

 
2343 HK (Pacific Basin)

Support: 2.90
Resistance: 3.60/3.95
Preferred Entry: 3.00 or lower
 

Stock is in a consolidation mode in a range between 2.90 to 3.20. Volume continues to be strong. Buy on point of breakout (3.21) or anticipate the move by buying near support levels (3.00 below).
 

The daily chart is anticipating a breakout with a target of [...]

The US market has rallied 4 days in a row starting last Friday (November 21). We have never witnessed something like this ever since 1933 (Great Depression Era). As I have argued in my HK market outlook ever since Friday, we are in a strong bear market rally, perhaps the mother of all bear market [...]

Even as the index closed higher yesterday, we still do not see an established trend yet because the broader picture still show us that the previous high and previous low have not been violated.
All indices ended in green yesterday with the PSEi up by 34points closing at 1967. Our main average gapped up at the [...]

Despite decliners topping advancers, the main index rose 24 points yesterday to close at 1932. Volume was thin at a little over 700 million traded shares. While most of the mining and financial shares were down, the rest of the sectors posted gains. The PSE composite index moved sideways in the early part of the [...]

Sinoma Cement (HK:1893)

This stock is a direct beneficiary of the China stimulus plan. I am just showing the intraday chart pattern as most stocks are only suitable for short term trading. Nevertheless, the daily chart pattern of the stock shows a bounce from its 50% Fibonacci retracement. As the Hang Seng Index looks to bounce [...]

My apologies for not having written the newsletter last Friday. I was actually too busy buying stocks and going long currencies against JPY. As soon as markets in Asia started going higher by six candle sticks 30 minutes before the afternoon close (around 12 noon Phil time) with almost all currencies going towards the same [...]