Charting around Asia

Random charts and musing from the Danielcode

by John Needham, The Daniel Code Report | January 22, 2008

Equity Markets

Asian markets followed the lead from the US to record another down week. The Nikkei managed to come off the lows of the week to close at 13861 a loss of 249 for the week.

Hong Kong’s Hang Seng Index closed down 1665 for the week at 25201 after staging a rally on Thursday and Friday. Property stocks were strong in Friday’s session as were mainland financial stocks.

China mainland’s Shanghai Composite Index lost 303 points to close at 5181 despite strong results from Industrial and Commercial Bank of China and China Construction Bank. Honkers and Shonkers (Hong Kong and Shanghai Bank, HSBC) reported further exposure to US subprime instruments and was down for the week but not significantly. Reports are that HSBC is making an aggressive push into the NZ mortgage market. Notice the increased size of the weekly bars on this chart. Volatility is growing in this index.

Taiwan bucked the trend with an up week gaining 155 points to close at 8184.

Australia’s SPI 200 index took a battering being down 242 points for the week to close at 5762. This correction in the Australian index is fairly benign considering the property and stock mania that has held sway in the Land Down Under for years.

It is worth looking at a monthly chart of the Aussie SPI to put things in context:

Gold

Gold is dear to all our hearts but nowhere more so than in Asia. Gold made a nice reversal bar right at its Daniel number of 917 with a high for the week of 916.10. It closed the week at 883.80. This is the Comex Gold chart.

The CBOE Gold index was even more precise. Please note the Daniel numbers on this chart are now superseded.

Currencies

AUD-JPY was down slightly for the week. Its weekly low of 92.65 was just above its next Daniel number at 92.13

AUD-USD put in a tidy turn at 90.22 just 33 ticks from its Danielcode target and traded down until reversing late Friday.

EUR-CNY had an inside week to be sitting at the bottom of its range and right at Danielcode support of 10.576. Still we can�t complain as we got a lovely tradeable turn at 10.8075 four weeks ago right at our Daniel number of 10.7943!

JPY-HKD continued its stellar run from its 68.15 close against its Daniel number of 68.13 on 12/25 to make its weekly high at 73.59 just below a cluster of Daniel numbers beginning at 73.72. Close enough??

NZD-JPY the all important conduit for the Down Under Uridashi trade was down to its next Daniel number at 81.24 but is still within its major trading range. Stand by for action if this cross rate weakens dramatically. You can read more about the antics of this important �canary in the coal mine� in my article URIDASHI! to be published on Financial Sense later this week.

The Singapore Dollar-Japanese Yen cross continued its descent from 79.02 delighting our traders with its turn on 12/27 at 79.02 against its Daniel number of 78.94 giving a variance from target of just 6 ticks (pips to you guys). The low this week was 73.82 against its Daniel number of 73.85. Precision indeed.

CAUTION-The Daniel numbers on these charts are from historic sequences that may not be current at the time of publication. They are appended for historic interest only. Do NOT use these numbers to trade markets. Current Daniel sequence numbers for most currency crosses are available to subscribers at the Danielcode website.

John Needham is a Sydney Lawyer and Financial Consultant. He publishes The Danielcode Report and writes occasionally on other markets. He lives with his family in Australia and New Zealand.

�The fox knows many things, but the hedgehog knows one big thing. A Hedgehog Concept is not a goal, intention or strategy to be the best. It is an understanding of what you can be best at. The distinction is absolutely crucial�. ~ Isaiah Berlin, The Hedgehog and the Fox

Contact Information

John Needham | The Danielcode Report | Taupo, New Zealand | Email | Website