Asia: India strong, China and Japan weak

Wednesday, October 3, 2012

Asia: India strong, China and Japan weak

Sydney, Oct 3, stock picks .- Asia slips on weak Japanese and Chinese data;India's Sensex is holding above 18500, confirming the primary up-trend. Rising troughs above zero on 13-week Twiggs Money Flow indicate buying pressure. Follow-through above 19000 would signal an advance to 21000*.

* Target calculation: 18.5 + ( 18.5 - 16.0 ) = 21.0

Singapore's Straits Times Index is testing resistance at 3100. Narrow consolidation indicates buying pressure and breakout above 3100 would signal an advance to 3300*. A 63-day Twiggs Momentum trough above zero would signal a strong primary up-trend.

* Target calculation: 3000 + ( 3000 - 2700 ) = 3300

Japan's Nikkei 225 is headed for a test of support at 8650. Failure would complete a double top reversal, signaling a test of primary support at 8200. Respect of zero (from below) by 13-week Twiggs Money Flow indicates selling pressure. Breach of 8200 would signal a primary down-trend with an initial target of 7200*.

* Target calculation: 8200 - ( 9200 - 8200 ) = 7200

South Korea's Seoul Composite Index is consolidating below 2000 on the daily chart. Rising 21-day Twiggs Money Flow, high above zero, indicates medium-term buying pressure. Expect a test of this year's high at 2050. Breakout would signal a primary advance to 2350*.

* Target calculation: 2050 - ( 2050 - 1750 ) = 2350

Chinese exchanges are closed the entire week for Mid-Autumn Festival and National Day. The Shanghai Composite Index is headed for a re-test of 2150. Oscillation of 13-week Twiggs Money Flow around zero indicates hesitancy. Respect of resistance is likely and would signal a decline to 1800*.

* Target calculation: 2150 - ( 2500 - 2150 ) = 1800

Hong Kong's Hang Seng Index is closed Monday/Tuesday but will re-open Wednesday. Rising 13-week Twiggs Money Flow above zero indicates strong buying pressure. Expect retracement to test 20000 but respect is likely and would signal an advance to 22000.

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Benjamin Graham Was A Crappy Hedge Fund Manager

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