AIO Finance Analysis

The Bulls will not surrender. At least for the time being.

Hang Seng Index: 24053.61 (-1068.76)
Nikkei Index: 13087.91 (-541.25)
ST Index: 3041.06 (-118.42)

Well, everyone might think that I am being cynical based on the ironic results we had in the Asian session today. Hang on. Allow me to elaborate.

If you all had been observant enough, volume was relatively thin today, especially ST Index with only 1.3 bln trade volume done, a turnover of approximately $1.6 bln. What does this signify ? Bears are exhausted. Is it a deliberate move by the BBs to push down the markets so that they can buy cheap? I won't rule out this possibility but I might be wrong too.

Anyway, let's move on. Dow Jones is looking good now and it seems like a victory day for the bulls once more as investors are anticipating a 0.5% basis point cut from the Fed, not forgetting Europe had also recovered from a huge gap down following a disappointing Dow's performance yesterday.

Rule of Thumb:

Never trust futures. They are only indicative, lagging and not definite. Can only be taken as reference. Markets are dynamic creatures, like a chameleon. Any slight broadcast of news would move the futures and no one is able to predict what will happen next, unless you are GOD.

I firmly believe that markets will make another U-turn tomorrow, with the contest between the Bulls and Bears continues. But this time the Bulls will triumph. Well, at least for another two days, prior to the much awaited Federal meeting.

Oh ya, one more time i forgot to mention. Did I ever mention Gold was the current safest bet ? I think i did. It's currently trading at $927 an ounce, up from a comparative value of about $874 an ounce traded, mentioned on 23th Jan's post. If you are a Gold futures' expert, you will know what I mean.

Enough about Gold. If Dow really closes GREEN tonight, Yangzijiang will be a good buy. Cheers !!