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HSI...I...I...I am appalled

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November 27, 2009 – Comments (7)

Like I was observing a few days ago in my last post on Asia (Another Look at a Few Asian Markets), there have been a lot of "un-bullish" developments on the charts.

I was observing that the Hong Kong Hang Seng (HSI) was in an ending diagonal. Well the last 2 days proved very un-bullish indeed. HSI is a mixture of Asia and Financials, and both are getting hit pretty hard in the crotch recently.

7 Comments – Post Your Own

#1) On November 27, 2009 at 6:48 PM, binve (< 20) wrote:

Looks like a diagonal breakdown to me.

Keep buying those dips!

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#2) On November 27, 2009 at 6:59 PM, DaretothREdux (38.71) wrote:

+1 for the word "crotch"

Dare

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#3) On November 27, 2009 at 9:28 PM, alexpaz (29.05) wrote:

Nailed it Binve!  If down 1,000+ doesn't wake you up in the morning nothing will!

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#4) On November 27, 2009 at 9:49 PM, topsecret09 (38.88) wrote:

#1) On November 27, 2009 at 6:48 PM, binve (28.36) wrote Looks like a diagonal breakdown to me.

Keep buying those dips!   I'm not so sure this time. Too many people are bullish,this Dubai thing could literally blow up. Just do not have a good feeling....   Keep up the great charts,I have a feeling they are going to become more relevent In the near future....   TS

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#5) On November 27, 2009 at 10:17 PM, binve (< 20) wrote:

DaretothREdux, LOL! Thanks man :) Words like "crotch" add a certain .... texture .... to my posts :) But beware when I start throwing in poop jokes!

alexpaz, Thanks man! No kidding. This is a *huge* move and a very big deal (which I am sure the bulls will try to gloss over)

topsecret09, Thanks man! And just to be clear, I am a *very* sarcastic guy, and the "Keep buying those dips" is *oozing* with sarcasm.

I think this diagonal breakdown, if it is confirmed by a failed retest, is signalling the start of a major downtrend.

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#6) On November 27, 2009 at 10:19 PM, topsecret09 (38.88) wrote:

topsecret09, Thanks man! And just to be clear, I am a *very* sarcastic guy, and the "Keep buying those dips" is *oozing* with sarcasm.

I think this diagonal breakdown, if it is confirmed by a failed retest, is signalling the start of a major downtrend.    SARCASIM NOTED....   LOL  !!!!!!!!!!!!!!!!!!!!   TS

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#7) On November 28, 2009 at 11:59 AM, hhasia (66.50) wrote:

OK  FOR THE WAKE UP CALL ON HSI

First understand that HSI is 45% Financials.

Beginning of the week Event Number 1: 

Spooked investors dump Chinese banks on news of further capital raising, expanding share base etc... The index $ move out of Chinese banks to local banks. Overall the index is up.

Event Number 2:

Dubai: Now understand...HSBC holds some of this debt. HSBC is the LARGEST weighted company on the index.  In fact according to China Daily  of the 1,075 point drop HSBC was 200+ of those points.  Imagine that... ONE company.. was 20% of the drop!.

Seeing the index falling, the retailers (25%) of the market trading, jump on that train. a whole-sale sell-off.

Prior to this, the index had not peaked to justify the wholesale sell off. As we have charted before, the peak is when the P/E breaches 20-22.  Is was close to cracking 19.5 at the end of October. With this sell-off it reverts closer to mean.  All in all healthy.

I love these panic days. Opens doors of opportunities that were missed before. Especially on companies like Skyworth digital that issued a ...get  this... profit warning last week. The message.. First half 2009 earnings will be substantially higher than anticipated. Or a monopoly like Travelsky Technologies that quietly moves up and is little followed.

So no matter what the index does, there are strong companies emerging in line with the larger trends of expanding middle class.

Just aviod the nut jobs, and buy on dips? Carefully.

HHASIA

 

 

 

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