In an interview with SPIEGEL published on Monday, [Interior Minister Hans-Peter Friedrich] said: “Greece’s chances to regenerate itself and become competitive are surely greater outside the monetary union than if it remains in the euro area.” He added that he did not support a forced exit. “I’m not talking about throwing Greece out, but rather about creating incentives for an exit that they can’t pass up.” It was the first time a member of the German government called on Greece to leave the currency.
Canada TSX: Potential breakouts
Hudson Bay Minerals [HBM_ca] follow through above 12.50 would confirm a primary up-trend.
21-Day Twiggs Money Flow holding above zero indicates buying pressure, while recovery of 63-day Twiggs Momentum above zero suggests a primary up-trend.
China Bystander: The middle-income trap | 中國外人
The arc of China’s development is not that different from the rapid industrialization phase of countries such as South Korea, Japan or even, much earlier, western Europe and the U.S., even if the magnitude of China’s arc is on an unprecedented scale. The country’s well of cheap labor, transferred from farm to factory, is starting to run low. Demographics, too, are working against growth. The value of foreign-developed technologies diminish as they age. Most of all, the economy needs to move up the value chain if it is to clear the barrier at which so many developing economies fall, that point where per capita income reaches at $10,000-12,000 a year. Vault it, and a nation becomes a middle income country on the road to being a rich one. Fail, and the country ends up stuck on a plateau of disappointed expectation.
….It is the politics that is the quagmire. There are clear implications for the Party in adopting market reforms. No country has done so successfully and remained a one party state.
….Reining in the power of the SOEs provides a particular challenge to the reformers. SOEs, like the military, are a source of power, money and influence for the princelings, the descendants of Mao’s original revolutionary leaders, an elite collective dynasty of some 400 families who hold extensive sway over the Party, army and the economy.
China Bystander: World Bank report | 中國外人
The World Bank report offers [China’s reformers] a strategic description of the way forward rather than policy prescription. Its six strategic directions for China’s future are:
- Completing the transition to a market economy;
- Accelerating the pace of open innovation;
- Going “green” to transform environmental stresses into green growth as a driver for development;
- Expanding opportunities and services such as health, education and access to jobs for all people;
- Modernizing and strengthening its domestic fiscal system;
- Seeking mutually beneficial relations with the world by connecting China’s structural reforms to the changing international economy.
Japan: Nikkei 225 rallies
Another long-term (monthly) chart. This time of Japan’s Nikkei 225 Index, which has rallied off support at 8,000. Expect resistance at 10,000 but a breakout would signal that a bottom is forming. Recovery above 11000 would indicate a new primary up-trend.
China’s soft landing
The Hang Seng Index is approaching its target of 22,000. Expect retracement to test the new support level at 20,000. Respect would confirm a strong primary up-trend.
* Target calculation: 20000 + ( 20000 – 18000 ) = 22000
A monthly chart of the Shanghai Composite Index reflects China’s soft landing over the last two years. The gentle down-trend is likely to continue, with the current rally testing the descending trendline around 2850.
ASX 200 resistance
Australia’s ASX 200 index is struggling to break medium-term resistance at 4300. 63-Day Twiggs Momentum continues to indicate a primary down-trend (breach of its rising trendline would strengthen the signal). Failure of support at 4180 would warn of another test of primary support at 4000.
* Target calculation: 4300 + ( 4300 – 4200 ) = 4400
UK & Europe: Selling pressure
The FTSE 100 is running into resistance at 6000 — note the short weekly candles and bearish divergence on (medium-term) 21-day Twiggs Money Flow. Expect retracement to test the new band of support between 5600 and 5700. The primary trend, however, remains upward; so the target of 6100 is unchanged.
Germany’s DAX has also run into medium-term selling pressure, but remains in a strong primary up-trend with a target of 7500*.
* Target calculation: 6500 + ( 6500 – 5500 ) = 7500
Italy’s MIB Index is not yet in a primary up-trend, but narrow consolidation below 17000 suggests an upward breakout. Medium-term selling pressure is evident, however, even on the long-term 13-week Twiggs Money Flow, and failure of support at 16,000 would warn of another test of the primary band at 13,000 – 13,500.
* Target calculation: 17000 + ( 17000 – 14000 ) = 20000
Singapore SGX: Potential breakouts
Some good potential breakouts on Incredible Charts screen #48888:
- China Taisan (F2X)
- Hong Leong Asia (H22)
- Amtek (M1P)
- Singapore Exchange (S68)
- Cosco (F83)
- Neptune Orient (N03)
Singapore SGX: Top Momentum stocks
Yoma (Z59) breakout above 0.50 would signal another advance. Both Twiggs Money Flow and Momentum are bullish.
I also like the look of Sky Holdings, Interra Resources and Ezion Holdings:
Although Ezion faces some profit-taking at 1.00 that could slow a further advance.