Japan's recovery accelerating, central bank says.

Exports driving Japan's economic recovery into higher gear, central bank says.

Tomoko A. Hosaka, Associated Press Writer, On Friday April 30, 2010, 5:07 am EDT

TOKYO (AP) -- Japan received a brighter assessment of its economic future Friday, with a key central bank report highlighting an accelerating recovery and easing price declines.

In its semiannual outlook, the Bank of Japan predicted that the world's second biggest economy would see faster growth this fiscal year, which began April 1, and a possible end to deflation within two years. Gross domestic product will probably expand 1.8 percent this year, the central bank said, better than its previous forecast of 1.3 percent.

The report credited robust growth in overseas markets, particularly in Asia, for fueling Japanese exports and production. Stock prices and corporate profits are up. That should boost capital expenditures and eventually lead to more jobs, higher wages and stronger domestic demand.

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Charts in brief: 30 April 10.

STI rises 0.5% to 2,974.61 at closing
Friday, 30 April 2010

© 2010 - The Edge Singapore

CapitaMalls Asia: Closing at $2.19 on high volume on a white candle day confirmed a reversal.  The MACD continues moving upwards towards the signal line and could form a bullish crossover if the momentum continues.  MFI has turned up sharply but is still in the oversold region.  OBV has turned up sharply indicating increased accumulation.  Immediate resistance is at $2.23 and $2.27.

AIMS AMP Capital Ind REIT: This is the second session in a row where price closed at 23c.  The 50dMA is crossing 100dMA to form a golden cross. MACD continues to pull away upwards from the signal line.  MFI continues to rise but is not overbought.  OBV continues to climb upwards in a steplike fashion. This counter is unlikely to rocket upwards in price but it is a steady performer with limited downside.

Golden Agriculture: Another black candle day on heavier volume, with price closing unchanged. MACD is still in decline while the MFI and OBV are flattish. This counter seems to be stuck in a slow drift downwards and it has been forming lower lows.

Courage Marine: Buying momentum is still on the retreat as the MACD continues to pull away from the signal line on the downside. MFI continues its decline. However, OBV has turned up which probably resulted in today's white candle. Volatility has reduced somewhat and the Bollinger bands are beginning to narrow.  22c has been established as the immediate support.

Saizen REIT: Very high volume sell down today as units traded at only one price, 16.5c. Technically, things look bearish.  The MACD continues to decline towards zero.  MFI has entered the oversold region.  OBV has gone below what I identified as a critical support. Momentum oscillators have not been so bearish in a while.

Although the uptrend is intact, continuing sell down might see the price pushed to as low as 15.5c, a support provided by the rising 200dMA. It seems that the declining 100wMA is creating a tempest.

Of course, Saizen REIT is announcing its results on 12 May. Would that provide a positive catalyst for price to leapfrog the 100wMA? We will just have to wait and see.


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Charts in brief: 29 April 10.

Tea with AK71: A piece of cake?

A couple of weeks ago, someone told me that he was thinking of putting some of his savings in the stock market.  He asked me how much should he put in. I asked him how much was he willing to lose. That stumped him and he looked puzzled. He went quiet and then, with that same puzzled look, asked me if I was not going to help him make money. Woah! Stop right there.  I decided to give him a history lesson there and then.  Question: Excuse me, are you an investor?

No one should ever enter the stock market thinking that he would only make money.  That must be the grandest delusion ever.  Don't ever get into the stock market if one thinks of only making a lot of money and not losing some (or a lot, for that matter). 

Entering the stock market is just like entering a relationship.  Don't ever get into one if one thinks that every relationship will have a nice "happily ever after" fairy tale ending.  There will be rough patches.  There will be sleepless nights.  There will be headaches.  However, they are part and parcel of the learning process and they, believe it or not, enrich our life experience, well, in a perverse way, whether or not the relationship works out in the end.

We can't have our cake and eat it and well should we know this. Right, a spot of tea and, perhaps, some cake, anyone?