What the charts tell us

A quick scan at the daily charts and we've found for DJIA, its nearest support is at 18200. If this level able to sustain, market will slowly test 2016 high, which is 18622. On the other hand, break below 18200 will test next support at 18000. A big correction might comes if Dow broke below 18000, far support-17600.

As for Nikkei 225, the market was range trading between 15500-17000 since Feb till today. Where is the market heading? Will the 28 Trillion stimulus able to move the market higher? Far support we are looking is at 14000. Upside resistance 18000, next 22000. These are the trading range we think Nikkei 225 gonna move for the rest of the year.

We haven't seen any recovery yet for Shanghai Composite Index since the big drop from May 2015. The market had been moving between 2700-3100 from beginning of the year to date. Nearest support for SHCOMP is seen at 2900, next 2800. Resistance 3100. If Shanghai market able to break above 3100, next target 3300-3400. Will China becomes the favourite market for investors and fund managers?

Hang Seng Index rebounded aggressively since the Brexit day close to 19500 from end of June, till today's closing at 21739. Immediate support is found at 21500. If further correction happened, next support we are seeing is at 20500. Near resistance 22500.

KLCI Index and the currency Ringgit considered as the worse performing market in South East Asia region due to 1MDB incident. Market was trading between 1600-1730 for the past seven months. We think KLCI Index will test support at 1640 in near term. Further down, support is 1620. On the upside, resistance is 1670. 

The bear is in control...

Happy Chinese New Year to those who are celebrating the festive season! We are away from the trading desk, therefore there will be no update from us about the market.

We didn't really pay attention to the market as we are taking a CNY break. All we knew is Hang Seng Index plunged 1000 points when market resumed trading yesterday. Nikkei 225 broke 52 weeks low again, lost almost 2000 points within this trading week. Looks like the bear is in control of the market. 

We'll come back to the market when we are ready. Happy holiday to those who are still in holiday mood; happy trading and happy investing to those who are in the market!

Negative Interest Rate for BOJ

Imagine you are living in a country where the interest rate is negative, what does that mean? It means the money you have sitting in the bank doesn't give you interest! Your money isn't growing!

Today the Bank of Japan announced adopting a negative interest rate for the country. We believe it is a move to stimulate the economy. It is a supplementary increase in Japan's qualitative and quantitative easing programme (QQE). Sounds like the QE2 The States used to have.

Nikkei 225 experienced a roller coaster ride during the trading hours. Finally, the cash market surged 476.85 or 2.80 percent, closed at 17518.30. As for Japanese Yen, we see some weaknesses. ¥100 is equivalent to RM3.40; ¥100~ USD $0.82 or 1USD ~¥120.

Maybe this is the time to visit Japan; time to collect some quality Japanese liquor...