Asia to decouple from US this week?

Over in the US, the markets appear that they may still undergo more consolidation while the Asian counterparts seem to have bottomed out and ready to rally.

I believe that the Shanghai market has just bottomed last Friday and has the potential to lead the Asian market higher. Hang Seng would likely be the co-leader. I still like Singapore but Malaysia could lag a little due to its uncertain political cloud. Also, I believe that the plantation sectors has peaked. So, the upside for these stocks would underperformed against the rest of the other sectors. 30% of the KLCI is now made up of plantation counters, and this would likely keep a lid on the upside for the KLCI. Nevertheless, Malaysia could continue on its rally to close the gap at 1263-1283. With a little bit of luck, it could possibly hit 1,296 as well this week.

STI could continue to head to 3,150 before rising to test the 3,268 level again. Banks and property are the sectors that I like. I also like the S-shares traded on the SGX. C&G Industrial, and China XLX are a couple that I like although China XLX has moved up quite a bit.

Stock Exchanges in demand?

Yeay!! All markets seem to have reversed their downtrend... STI, KLCI, Dow, S&P. Hang Seng is about to breakout of its downtrend channel.. So, watch for it either today or tomorrow.. STI could reach as high 3,300 but the immediate target is 3,150. KLCI could reach 1,250 first but it could reach as high as 1,304 next.

Since most of the countries' markets are starting to pick up again, it may wise to look at the listed stock exchanges.. I like Bursa Malaysia and Singapore Stock Exchange as well as the Hong Kong Stock Exchange. I believe all three are strong buys now as all have hit their strong support levels. For those who prefer to take on a bit more risk, one may want to look at their call warrants.. Even so, always make sure you know the exercise price of the warrant.

Singapore Banks to fly!!!

I believe Singapore Banks will fly today!!! DBS, OCBC and UOB could rally hard from here. They make up of about 31% of the STI. With the STI breakout yesterday, the index could be heading towards the 3,150, followed by 3,268 level. So, there banks would likely lead the way. DBS and UOB have a long term target (6-12months) of S$25. OCBC is about S$10.50. For more adventurous investors, one might want to take a look at the call warrants which has lower exercise price.

For Malaysian who want exposure to the Spore Banks, only DBS has a call warrant listed on Bursa. It is quite attractive too as its exercise price is only at S$18.20.

When times are the most bearish....

Globally, there is talk that the whole global financial market is on the verge of collapse... Depression (which is worse than ressession) is being mentioned all over the the papers, magazines and tabloids... the world is as if it is going to come to an end...

hmm, i smell the bulls are ready to kick back strongly soon... When times are the most bearish, it is time to BUY!!!! We may have seen the worse in this past couple of weeks... especially in the Malaysia where the index saw the largest 1-day fall in a decade...

Technically, global indices may have corrected abt 38% of the large Wave 3. The a-b-c correction on the S&P500, Hang Seng, Malaysia, STI... it is time to go into the market now!! there may be volatility ahead in the next few weeks, but i believe that the trend is about to change!!!!

Malaysia - i like stocks that have been bashed down with good fundamentals - Kencana, Gamuda (for trading), Tenaga.

Spore - i like the banks, and property counters like Capitaland, Banyan Tree, Tat Hong and their call warrants... just becareful with the call warrants on its expiry and exercise price.