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June 13, 2006

Bear market worsens in Asia Pacific, Tues. 6/13/2006 6:21 AM

In the worst day of trading in at least two years for Asia Pacific bulls, the bears drove share prices lower.

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European markets are also selling off today but these are trading in hope that inflation news in the U.S. will improve the outlook somewhat. Nobody in the world wants higher interest rates in the U.S. because they know that the economy will shut down, first in the U.S. and then abroad.

Traders in Japan, which is a huge seller of products to the U.S., sold the Nikkei 225 down by -4.14 pct today as 222 of 225 stocks were down on the session. Traders are focused on the inflation data leading up to the next FOMC meeting on June 29.

In India, the Bombay Sensex index fell by -5.53 pct on the session, which is a loss of -28.6 pct since May 11. All the gains of 2006 have been wiped off the board. There is no end in sight to the sell-off as capital investment in India has been pulled out during the current capital liquidity crisis that followed the May 10 FOMC report.


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Posted by Posted by Bill Cara on June 13, 2006 06:21:09 AM | Category: Cara Today in the Market , India , Japan

Discourse

Bill,

In the latest WIR you mentioned XGD may be getting into a second accumulation zone and you would let us know. If you can comment on how to determine if we are there it would be much appreciated.

Thanks.

Posted by: ursus [TypeKey Profile Page] at June 13, 2006 6:54 AM [link]