Asia Morning Analytics : A technical bounce!!!

Dear readers

As previously discussed, I continue to maintain a bearish view over the next month and has been claiming for a gradual decline. The situation has been murky, and all events are playing out against the market.

However, we may have a turnaround event over the weekend which may spark a technical rebound from current level - the /reek authority has accepted the EU changes to the plan, thus allowing a bailout package to go thru. This is certainly a hoorah event for the market in the near term, as we will see risk appetite to return for a bit. I anticipate the short squeeze on the euro may take the euro back towards the high end of march, looking at 1.34 as a cap.

However, remain to see that various global events maintain to keep a lid on further growth, as we continue to be trapped rangebound from the start of the year. Near term problems to highlight will continue to be sovereign problems, dubai world's repayment issue, and government measrues within the asia region.

The diversion in political measures start to raise alarms as the recovery base may not be as strong as one think. Given the bipolar nature of these policies, it may hamper the delicate recovery in front of us.

Cureently maintain bullish view on gold and oil, as they may provide near term hedging opportunity. How the market has been playing out also continue to support their advancement.

May consider to sell into this rally, or pick up thede hedging instruments. Just like the theme for the day, advise investors to look at this tech rebounding days ahead.

Again, trying to keep it short today, shall there be any needs to further discuss, please do not hesitate to contact gfainvestment@gmail.com. We are more than welcome to answer your questions or respond to your query!

Ongy out.