Asia Morning Analytics 290410: A continued murky situation

Dear readers

As previously mentioned, we have anticipated jittery markets from mid april when we believe valuations started to strap the market. With last night 4pain receiving its downgrade, this provides our continual bearish tone on global markets. We view the optimism led by FOMC and HP last night will be short lived as we may anticipate the EU region may spark a real risk for contagion for sovereign risk.

However, we are in a position looking on bets off the table as the current situation may force EU policy makers to coordinate some more efforts to talk the market out of trouble at the moment. We may expect some short squeezes today that may lift the market up on a day ahead basis.

The issue is Asia do also post its own problems, in addition to the global sovereign risks. This helps putting a bearish view on the market.

As previous article mentioned, we continue to maintain the view that the market will struggle up for period up to may end. We anticipate a gradual decline here for roughly a 5% - 10% mark.

Trying to make it short today, however should you wish to continue to discuss, please contact gfainvestment@gmail.com.

Ongy out.