Hong Kong, Australia Index 7-25-2011

Since PSE has no tradable cheap stocks, I am leaning towards these 2 nearby Asian countries which are good in returns on a range the trade patterns.

HSI, Hong Kong Index, is now pegging at 22,000, at support of the 21000-24000 trade the range. Although this index is Miedum term downtrend, the 11x ratio is sooo inviting and has lot of reasons to be buying with. The cheap RSI, the near support trade the range which has 5-10% returns, and 9 months of continuous downtrend which is gaining momentum to have a breakout.

Buy near 22000 at the support, or preferable near 21500. next support after that, 20000-20800.



Another market I am trading is the AU Index, which is the #1 composition of the "one and only" dollar equity tradable in our local banks - the ING-BPI Asia Fund.

lthough we were stunned by the -1.2% GDP growth of AU last Q1, it is mainly due to the flood it had that has caused the slowdown.

The trade the range patter is also so convincing with a 3-8% tradable range.

Buy near 4460 level, it it does not hold, accumulate near 4200. (current P/E = 15x)

Personal Disclosure: I was able to successfully trade 4.5% Net for the past 2 months, Even though the global market is -3% for the past Quarter.