Asia: Sand in the Gears of the Bull Market

Asia:
Sand in the Gears of the Bull Market

By: George R. Harrison

The Asian Stock Market scene has been dynamic and strong. At least until some sand got into the gear works a few months back and started to grind the bull markets to a halt.

The ‘canary in the coal mine’ was first spotted in the Malaysian Stock Index.

Malaysian1

Malaysia’s stock market has been the weakest of the 4 we’re looking at here and, as the chart shows, has fallen around 7% in the last 3-month’s time.

The Malaysian Stock Index decline also made it’s appearance known in both the Hong Kong and the Singapore Stock Indexes . . .

HongKong4

Near mid-September, the train ride upwards became derailed, hesitating and then started working it’s way further on the downtrending slope.

Singapore, the financial capital of the region, reacted and mirrored the shift at the very same time.

Singapore3

The main difference between Hong Kong and Singapore Stock Indices is that Singapore has weathered the shift much better, showing itself to be the stronger market of the two during this time period.

Of course both of these markets are huge compared to Malaysia.

No doubt that the continuing massive movement of funds to Singapore (leaving nations perceived as less safe and secure) has gone a long way towards keeping the index stronger, even after it’s initial falter.

However, all is not well in the region and there are plenty of ‘signs’ that indicate that a slowdown and trend change are in progress.

Besides Indonesia, (which has defied expectations by continuing it’s rocket ride upwards in spite of oil’s crashing prices) Thailand has been a shining light reminder of the good old days of uncomplicated bull market price movements.

It has enjoyed a beautiful, strong upwards, non-volatile bull market move all this year (until recently).

Alas, that sand-in-the-gearworks I wrote of earlier has begun to make itself visible in the Thai market now. When you look at the chart, you can almost hear the grinding and slowing down of the ‘gears’ to this index. If you listen closely enough, you may find that they have stopped and are starting to reverse a little.

Thai2

The Thai stock index has also been strong and managed to hold off the beginnings of faltering for an additional quarter past when the initial shifts were beginning to show in Hong Kong, Malaysia and Singapore.

However, it may be time for this market to ‘catch up’ and the last few days seem to indicate that that’s what’s happening.

SETI_3

Behind all of these market gyrations is the effect of the US DOLLAR and the weakening of so many currencies against it. We’ll examine this more closely in the next article as space is limited here. – George

© 2014 Copyright George R Harrison – All Rights Reserved
george@money-tigers.com

Disclaimer: All articles and posts are a matter of opinion (drawn from over 44-years of market research & experience) and are provided for general information purposes only and are not intended as investment advice. Information and analysis above are derived from sources and utilize privately discovered methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisers.
—————————————————————————————-
Bio: George R. Harrison’s background includes time as a Hedge Fund assistant manager; an intensely focused 44-year long period as a researcher of the Markets, a Master Market Analyst & Chartist.

George has been recognized by Gann-trained clients from around the world as a uniquely qualified, modern-day WD Gann expert, (having rediscovered and restored-to-print many ‘lost’ Gann techniques through his decades of research work) and creator of several revolutionary market analytical techniques and tools.

Mr. Harrison continues his market research & private client consultation and instructional work while living on the island of St. Croix in the US Virgin Islands.

Current market comments and archived articles may also be found on his website at www.wdgann-lost-secrets.com.

George may be contacted by e-mail at: george@money-tigers.com

goldbar