Bears wake up from 2 days nap.

(Posted Thursday, Singapore time 0445 am)

As you already know, global equities were slaughtered by the bears last week. While the bears were in hibernation, the bulls fell for the bear trap!

Realistically, with

·         global growth concerns,

·         EU debt crisis,

·         Bernanke’s worry on the US economy

The bull trap was clearly prominent. My earlier post, What is the reality reminded you.

If you had not heard, there was an article from Bank of America on ‘China Hard Landing’ that brought US major indices to their knees this morning.

Dow, Nasdaq and S&P fell 179.79 (-1.61%) 55.25 (-2.17%) and 24.32 (-2.07%) respectively.

For the reasons above, investors poured into the US dollar, That is risk off! The USDX touched a high of 78.66 from a low of 77.84. As a result, Gold fell to a low of US$ 1,598.80, crude 80.55 Audusd 0.9778. The CBOX VIX increased almost 7% to 39.4. All the above indicators are telling us that this is risk off.

If my reading is correct, Asia Pacific would open lower. However, depending on the outcome of Merkel’s key EFSF vote, the course may change. US GDP, due later in the day might spring some surprises!

Frankly, I don’t suggest bargain hunting nor dollar cost averaging until the whole sky is clear.

As I spend most of my time monitoring and gathering information, timely information and effective execution should not be compromised. I hope my posts would provide you with timely information for your short, medium or long term investments. Gentle reminder. Add me to facebook or twitter for immediate delivery of my post.