Singapore Stock strengthened by China's PM Lee 7% grow bottom line statement

Asia stock markets were strengthened by China's 7% grow bottom line statement.  China's economic may avoid hard landing. And China Government could inject more projects e.g. railway network expansion to power up economic grow.

"The bottom line for economic growth is seven percent, and this bottom line must not be crossed," China's PM Li told a meeting earlier this month, the Beijing News reported.

http://www.channelnewsasia.com/news/business/international/china-s-pm-li-says-7/753080.html

 Monday STI is stronger than expected. And it close above the support levels.


                 23 June closing               Moving average 10/5 cross over          Stochastic drop below 80%
STI           3253.56                          3235                                                   3232

Technical Analysis show that STI are 20 point above turning points. Unless STI could hold above 3235, Singapore market could turn weaker.

Technical Analysis are measuring market moment to forecast market trend. But it can't predict surprise events / policy changes. Monday STI went up was happy surprise

Singapore Stock STI - is turning weak.

In my 1st July post STI at 3147, Technical analysis predicted an uptrend and suggested to buy. And market went up to 3258.

Today Technical Analysis show an advance warning that STI may turn downward.  STI is 3208 now but Stochastic 80% is 3231. And 5 days moving average may fall below 10 days on coming Monday 22 July 2013.

I sell stock today. I sell China Bank ICBC and Geylang Bond to increase my cash level.

STI chart show market may start to go down

HSI also show similar weakness. Monday could be market turning point.

DJI are strong but it is too high. And investor may profit taking

Today is the DAY - market go up confirmation

Today HK HSI re open after 1st July public holiday.

Latest HSBC China PMI below 50% i.e. China's SME slow down. HSI go down 0.39%  at 12:26pm. As long as HSI don't close below 19900. Today will be the day of reverse confirmation. Market will go up.