Charts in brief: 23 April 10.

STI gains 0.3% to 2,988.49 at closing
Friday, 23 April 2010

© 2010 - The Edge Singapore

CapitaMalls Asia:  No descend to $2.12. Opened at $2.17, hit a low of $2.14 and closed at $2.17.  A dragonfly doji and, yes, a bullish candlestick. We have a green histogram on the MACD after many red ones.  A buy signal.

The stochastics is turning up from the oversold region while the MFI is deep in oversold territory.  Is this a reversal?  Needs confirmation and immediate resistance could be found at $2.26, a candlestick support that failed on 16 April.  Incidentally, that is also where we would find the descending 20dMA next Monday.

CapitaRetail China Trust posts 7.5% rise in net property to $19m in 1Q
Friday, 23 April 2010

© 2010 - The Edge Singapore

Golden Agriculture: A white candle day as we get a buy signal on the MACD.  Stochastics has turned up and the MACD has turned up towards the signal line as well. The Bollinger bands look to be initiating a squeeze.  A retest of 62.5c, a three times tested resistance, looks likely. A longer term negative divergence between price and volume is still intact and like I said in an earlier TA, I might just divest some of my remaining shares at 62.5c, taking some gains off the table.

China Hongxing: My latest purchase is not turning out well, just like an earlier purchase of CapitaMalls Asia. Unlike CapitaMalls Asia, however, my purchase of China Hongxing was not premised on strong fundamentals.  So, I am wondering whether to cut.

Price declined on very much higher volume today to close at 14.5c.  The MACD turned down and seems poised to form a bearish crossover with the signal line.  This negated the buy signal seen yesterday. All the momentum oscillators have swung down.  I might cut loss on Monday.

Courage Marine: The technical picture isn't all that great here either but the OBV is flat.  So, that is at least a positive as it suggests that the weakness is not accompanied by any massive distribution. The MACD has done a bearish crossover with the signal line. If 22.5c gives way, price could go lower.

Saizen REIT: Many must be wondering at the weakness displayed by this counter in recent sessions.  If we take a look at the weekly chart, it becomes quite clear why this has been so.  Saizen REIT has one big hurdle to cross before it can go higher: the 100wMA.  I have mentioned this a few times in some earlier posts.  This descending 100wMA is a powerful negative force, a strong resistance.  It is now at 17.5c.

The 100wMA is keeping a lid on Saizen REIT's attempt to move higher in price in the short run. The rising 20wMA is at 16c.  Price action is probably going to be trapped between the 100wMA and the 20wMA for a while. Any descend to 16c will see increased buying interest.

In the short term, Saizen REIT is trendless but over a longer term, it is in an obvious uptrend.  The weekly OBV shows an obvious trend of accumulation over the last few months too. My strategy for this counter has been and still is a simple one: buy and hold.

First REIT’s 1Q distributable income up 1.3% to $5.2m
Friday, 23 April 2010

© 2010 - The Edge Singapore

Maria Bartiromo on Goldman Case: Where's the Fraud?

Posted Apr 22, 2010 04:23pm EDT by Peter Gorenstein


Related posts:
China Hongxing: Prime for a breakout?
Charts in brief: 21 April 10.

Revaluing the RMB.

Revaluing the RMB is a matter of when, not if.  It is widely known that the RMB is undervalued and the Chinese government realises that it has to let the RMB appreciate. This would bring down the cost of living in the country and help put a lid on inflationary pressures.  However, China wants to do so at its own pace. 

The Chinese government is and has always been very concerned about not losing face. A confrontational attitude from outsiders would do more harm than good.

When the RMB is revalued upwards and we can expect this to happen in a series of steps in time, foreign companies with assets in China and with earnings denominated in the RMB will surely benefit. Also, foreigners should find investing in Chinese companies and assets attractive in such a situation as the value of their Chinese investments in their home currencies would likely increase.

China is on track to overtake Japan as the largest economy in Asia and companies which are well positioned to benefit from the growth of the Chinese economy will most likely do better than peers which are not.

CapitaRetail China Trust posts 7.5% rise in net property to $19m in 1Q
Friday, 23 April 2010

© 2010 - The Edge Singapore

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Yuan Gains May Help China Vault Past Japan to Be No. 2 Economy

April 19, 2010, 1:36 AM EDT


April 19 (Bloomberg) -- China’s anticipated move to let its currency appreciate may help the nation overtake Japan as the world’s second-largest economy, Australia and New Zealand Banking Group Ltd. said.

 A 5 percent revaluation against the dollar could see quarterly gross domestic product exceed Japan’s as soon as July- to-September this year, estimated Liu Li-Gang, a Hong Kong-based economist at ANZ. The Chinese economy is likely to vault past Japan by year’s end even if the yuan remains stable, Liu said in an e-mailed interview.

Read complete article here:
Yuan gains may help China vault past Japan to be No. 2 economy.

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Weak Chinese Currency "Not Just An American Problem,"
FT's Martin Wolf Says.
Posted Apr 22, 2010 07:30am EDT by Peter Gorenstein



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New global economic leadership.