Asia Morning Analytics : The Begining Of a Bearish Tone

Morning readers

I'm proud to see the calls coming together so nicely from yesterday, as I have previously continued to note that the market may be in for a nicer and heavier breather.

Overnight certainly saw the typical bad news riding on early, and good news such as your labor stat, housing stat and earnings that are performing so well to bode the US mkt up from falling 1.3% to flat.

However, I note here this bearish down slope will be much slower and gradual than the jan-feb fall. We will continue to see pocket of anomalies that will bode mkt for a day or two before resuming down hill.

Given the overnight performance, we may expect hsi to stage a light rebound, still trapped in the 21000-21500 zone. I remain to reiterate here, these rallies should be sold into to lock profits or create shorts.

- remain to see this breather to stop around 20000 mark, given the amount of uncertainty in greece and is downgrade, and a possible contagion.

To better confirm this view, the action today will reveal our hypothesis. As long as the mkt is decent on the volume and finish relatively flat, it would further indicate our view is coming together.

That's it for today, happy trading!

Ongy out.