Hi folks,
Well, I should be posting this chart on Monday after the close...being officially the last day of the month but..... here it is as a teaser...
MONTHLY CHART: This chart has been cut off so you can properly see it closely....
The Trend Channel "WHITE" lines are still intact... Since 2009, when all Central Banks started printing and causing bubbles of today, SGP has been in a uptrend... and technically on the Monthly Chart its still is until break $3.91's clean(see the orange line)....IMHO.
The case here for the Bears and Shorters are IMHO: The cross and break clean of the 200 Moving Average in YELLOW line, various confirmations on Daily of failures to break the resistance levels... one of them at $4.28's recently... it has failed 3 X, Several indicators showing the Downtrend as intact.... one on the Monthly that can be considered quite interesting is the MACD. As you can see the "divergence" is ON.... it started in May, then was confirmed in June and now it's getting momentum....
The Macro case for it.... Debit Ceiling in the US is approaching rapidly and it will be a ripper IMHO if you are well positioned.... I am saying it will finally pop our Australian Housing Bubble in any shape or form...but, I am talking here on a shake up on financials and especially the stockmarket stocks....
Who will pop our Bubble and when is the million dollar question... for me? China will do it....but, because our tiny winy economy is so in debt and household debt is in steroids, it could come from anywhere really....The government will try everything to keep the bubble alive as they just did in early July taking the stamp duty out for new home owners.... they never learn..not even from history and early mistakes.... I bet there are so many developers lobbying all parts of the state and federal government that it is like a party .....
Could we have a small rebound in August ? yes... off course we could... will it happen ? maybe... but, the main structure of the technicals and market traps are partly set up already.... there are a lot of interest from fins that are overseas and they are salivating to short and take advantage of what will be the most significant economic event that Australia will experience. Remember, it has just happened in the USA... we have learned nothing and we kept going to debt here in Australia. The difference ? wow.. .we are a tiny mickey mouse economy.... we don't have the world currency and a Fed Reserve to print our way out of the debt.... it will be pure economics 101 .....IMHO.
Enough said.... Chart is looking decent for the ones already taking opportunity and for the ones thinking about it.
Plenty of data coming up tonight....
Exxon Mobil Corporation , Chevron Corporation , Merck & Company Inc , AbbVie Inc , LyondellBasell Industries NV , American Airlines Group and Ventas Inc are among the big names reporting before the opening bell.
Also Europe's biggest lenders reporting as well.... looks ok there but, Barclays PLC is showing a large loss.....
Interesting times ahead folks... get set before the storm arrives IMHO...
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Have a great weekend all
cheers
T10
