Asia 220509 Open

Morning all,

Again, would like to apologize over the lack of update over the last two days, but certainly the movements were not overly attractive to discuss over, with all the wipsaw move coming around the corner.

Though, last night, the move on the downside started kicking into the game, as investors gauges for the pullback to allow for fundamentals to catchup with the valuation. Again, this notion of consumer credit issue and rising housing defaults continues to loom over the market, while rumours over UK and US losing its AAA rating, as per Moody, sent shock over the system. Gold jumped over $950 mark, which to me, is a significant level. If $950 remains to hold, I remain a buyer of gold, as both an inflation and recession hedge.

Overnight, we saw downside continue to kick into the market, as DJ and S&P lowered by 1.5% and 1.6% respectively, though the IPO on ONETABLE was extremely sucessful.

Looking ahead, we see two main theme coming into the market:

1. Sector rotation across markets, seeking for more defensive stocks to protect downside.
2. Dollar divergence with the risk aversion poses questions as to whether the value of dollar is going towards a major downside, especially with recent credit rating rumours.

However, I would believe that the downside has not been excaberated thus far, though this bearish lead will remain intact for the coming sessions.

As of today, I remain to be seller of offensive stocks, and will look to be buyers of defensive stocks across market, a theme that I have been insisting on over the last 7-8 session.

Thats about it! Happy trading!

ongy out.