Shanghai Composite Index ran into resistance at 3200 after its recent breakout. Expect retracement to test the new support level at 3100. Respect would confirm the target of 3400* for the advance.
* Target medium-term: 3100 + ( 3100 – 2800 ) = 3400
DAX hesitates
Germany’s DAX is consolidating below 10800 but Twiggs Money Flow still reflects selling pressure. Breakout above 10800 would signal a primary advance with a target of 11500* but another test of 10200 looks equally likely.
* Target calculation: 10500 + ( 10500 – 9500 ) = 11500
Hollow Trees | Peggy Noonan
Great metaphor from Peggy Noonan:
You don’t know a tree is hollow until you push hard against it and it falls. The establishments of both parties did not know, a year ago, that they were hollow trees. They thought themselves strong because they always had been, and people think what has been true will continue. Then suddenly the tree is pushed and falls. To me that is the symbol, the image of 2016: the hollowed trees and how easily they fell.
Election night 2016 was not like 1980. That year produced an outcome fully within the political norms: a former two-term governor won the presidency. This year’s outcome went beyond all previous norms. Twenty-sixteen was like nothing in our lifetimes. In the future people will say, “Where were you that election night?” the way they do for other epochal moments.
Much of the mainstream, legacy media continues its self-disgrace. Having failed to kill Donald Trump’s candidacy they will now aim at his transition. Soon they will try to kill his presidency. Any journalists who are judicious toward Trump, who treat him fairly or even as a human being, are now accused of “normalizing” him. This is a manipulation: It is a way of warning your colleagues to approach the president-elect with the proper hostility or be scorned. None of this will do our country any good…..
Footsie under selling pressure
The Footsie (FTSE 100) is testing support at 6700. Narrow candlestick bodies for the last two weeks signal indecision, while declining Twiggs Money Flow warns of medium-term selling pressure. Breach of 6700 would warn of a correction to 6500. Respect of support is less likely but would indicate another test of 7100.
India: Sensex rally overwhelmed by selling pressure
Last week’s rally exhausted itself and India’s Sensex is again testing support at 26000. Decline of Money Flow below zero reflects selling pressure. Breach of 26000 is likely and would indicate a test of 25000. Support levels are fairly weak all the way down to 23000 because of the absence of strong corrections during the March to September 2016 advance.
Platinum’s Kerr Neilson slams ‘naive’ Western-centric view of the world
[Kerr Neilson, the founder of $23 billion Platinum Asset Management] said China “absolutely smashes America” when measured by physical goods, producing more motor cars, eight times more steel and 10 times more cement.
“We’re just comatose. We have no idea, particularly in the West, what’s really changing. So we have all this debate, that’s the politicians’ hard sell. You can no longer make these silly promises and say ‘we’ve got to be more equitable’,” he said.
“Sure, it’s a great idea, but in fact the place we’re competing against, these other teams … they play a very hard game. It’s no good complaining about the referee.”
Source: Platinum’s Kerr Neilson slams ‘naive’ Western-centric view of the world
Bonds fall after US Fed chair Janet Yellen comments
In her first public statements about the economy since Donald Trump’s victory in the US election last week, Ms Yellen told a congressional hearing that an increase in short-term interest rates “could well become appropriate relatively soon”, comments that sent Treasuries lower and yields on the 10-year note toward 2.25 per cent.
She said delaying a rate hike for too long could be detrimental for monetary policy and the economy….
Source: US stocks, dollar gain, bonds fall after US Fed chair Janet Yellen rate comments
Donald Trump vs. AT&T | WSJ
Other businesses watch to see if the phone giant can push its planned merger with Time Warner through a still-undefined presidency
By Thomas Gryta,John D. McKinnon and Keach Hagey:
Few companies had more at stake in the presidential election than AT&T, which made an $85 billion wager last month that would turn the giant telephone company into one of the world’s biggest media companies by swallowing Time Warner.
When the news was announced, Donald Trump told supporters in Gettysburg, Pa., he would block the deal if elected president. “It’s too much concentration of power in the hands of too few,” he said, calling the merger “an example of the power structure I am fighting.”
How the deal fares has become a test how of the Trump administration balances its deregulatory impulses with its populist aversion to large, powerful companies. Many other businesses are watching the merger as a signal of what’s to come…..
Source: Donald Trump vs. AT&T: A Signal Test of How Business Will Fare in New Washington – WSJ
India: Sensex finds support
India’s Sensex corrected sharply but found support at 26000. Descending Money Flow still signals selling pressure but a trough at the zero line would reverse this. Recovery above 28200 would suggest another advance, confirmed if we see a breakout above 29000.
China: Shanghai breakout
Shanghai Composite Index broke through resistance at 3100, signaling a primary up-trend. Rising Twiggs Money Flow confirms strong buying pressure. Target for the advance is 3400*.
* Target medium-term: 3100 + ( 3100 – 2800 ) = 3400