Monday, January 17, 2011

Trade 529: asx200 short

MACRO
china rate hikes, inflation pressures.

the short term macro effects are deflationary, but the aud and the asx200 are likely to go higher in the medium term as the insurance payouts lead directly into the rebuilding efforts in the economy - we can refer to the earthquakes in japan where the initial yen impact was deflationary then super inflationary/ stimulatory.

TECHNICALS
4800 huge resistence
short term selloff
med term falling momentum
TICK below 0 and falling

stops at 4780, target 4700