Equities in USA and Europe to do better in 2011.

Dr. Marc Faber shares his latest views on global equities in this interview with CNBC Asia last month.



I think what we should realise is that equities in USA and Europe could outperform equities in emerging markets by simply having relatively smaller corrections. It does not necessarily mean that they would outperform on the upside, they could just be less dramatic on the downside. Now, that is sobering.

However, Dr. Marc Faber's advice is still to stay in equities and commodities as these are expected to do much better than bonds and cash in the next decade.

"I am very negative about the world, because I think that what caused the crisis in 2008 was excessive credit growth, excessive leverage in the system, and now the private sector is de-leveraging, but governments are printing money, and through huge fiscal deficits are creating even more debt growth. So in other words, what killed the economy is now being applied to revive the economy, and I think this will lead to a disaster. But if you think it through and you believe in the disaster scenario I'm envisioning, then you will be better off in equities and in commodities than in government bonds and cash."

Genting SP: Bearish engulfing candle.

A really bad day for Genting SP as price action formed a bearish engulfing candle. Price started the day at $2.15 and closed at $2.06. What is worrisome for long holders here is the fact that volume expanded quite a lot on a black candle day. In fact, it is the highest since 3 December 2010.

The confluence of 20d, 50d and 100d MAs at $2.13 could well be the immediate resistance now while trendline resistance is at $2.19. Immediate support is at $2.00 which is followed by $1.92, $1.85 and $1.78 which is provided by the rising 200dEMA. So, is Genting SP's share price going to crash? Who knows but let us take a look at the weekly chart for a look at the longer term picture.

Bollinger bands are squeezing for an imminent change in direction after a period of low volatility, it seems. The MACD completed a bearish crossover with the signal line in late November 2010 and has been in decline since. The OBV suggests that distribution has been going on since the middle of September 2011. Both MFI and RSI show a decline in momentum. Through all these, volume has been declining. However, if today's volume were to be replicated through the rest of the week, volume would be very high this week.

Things look precarious. Let us see what Lady Luck has in store for Genting SP.

Genting Bhd., a Malaysian casino group, fell the most in two weeks after Citigroup Inc. cut its revenue forecast for the company’s Singapore unit to reflect a possible drop in gaming volume at Resorts World Sentosa.
Monday, 07 February 2011

© 2011 - The Edge Singapore

Related post:
Genting SP: A rebound or a reversal?

CapitaMalls Asia: Improving technicals.

Price overcame resistance provided by the 50dMA at $1.93 and touched a high of $1.96 before closing at $1.95, forming a white spinning top in the process. Volume expanded nicely as the MACD rose higher. Could we see the MACD crossing into positive territory soon? That would signify the return of positive momentum.

Connecting the highs of 3 and 17 January gives us a trendline resistance. We could see $2.00 tested next if the bouyant price action follows through. It also remains to be seen if $1.93 is resistance turned support. I am monitoring this counter as I get ready to divest some.

Related post:
Capitamalls Asia: Broke out of downtrend but still at resistance.

Tea with AK71: Some of my stuff (Part 2).

One of my favourite possessions is my wallet! I truly can't live without it! This was bought with money from my first pay cheque 15 years ago. It is a Heritage brand genuine leather wallet made in W. Germany and cost slightly more than $100 then. I remember I got it from Metro in Marina Square. The leather is really nice and soft. Good quality stuff. I can't find this brand anymore in Singapore. If you know where to get it, let me know. I would like to standby a replacement wallet, just in case.

This next item is a collapsible umbrella which I bought from Japan in 1998. Cost: JPY1,000 (equivalent to $15 in those days). I really like how compact it is and it fits into my briefcase. I am never caught without an umbrella when it rains. I doubt I could get one at the same price now even if it was still available. 

Do you have some old stuff which you are still using today? They don't make things the way they used to, do they? So what if they are old? Old is gold. :)

Related post:
Tea with AK71: Some of my stuff (Part 1).