12th Dec 2007

As you can see after the 0.25 rate cut and 0.25 discount cut, US markets plunged into a night of madness. When the asian markets opened in the morning, it suffered the effect too. As far as it is concerned, I'm personally not too worried about this. Why is it so? The market was already anticipating the rate cut today, and whether it was only 0.25 or 0.5 or more. The market was rallying for a few days, which I think had considered the 0.25 percent already, and it was hyping up even more for the 0.5 percent cut! This drop after the fed released the news is just heavy overselling and I was talking to my broker with regards to this and he told me probably next week is a good chance to enter as markets will be much more stablised with possible chances of the fed cuts in the new year itself.

As of now, YEN/USD is at 112.05-112.07 + 0.20, which is trending upwards, in my opinion is very good. However, oil has risen back to its $90USD/barrel. It's time to invest in those oversold fundemental stocks, and my next stock in list is FJBen, which deals in luxury goods. I will provide more information for this counter.

Tomorrow, Soon lian will be available in the open market and I will try to sell it out if the market bolds well tonight for US markets. In my opinion, I'm not really interested in these kind of companies, as it is a very common company that deals with alluminum alloy and looking into the future growth, I don't really see much of a investment. KTL will be opened on the 14th and I will see how its potential goes.

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