Germany paused near 7000 level, may have peaked short-medium term 8-12-2012

We are still anticipating a possible peak short term, bellwether for current Global Market is Germany.

We issued a 2 yr resistance at 7000 since 2 weeks ago, and we may have reached that level. Triggering a "warning" signal. RSI was also negative divergence, MACD didnt.

August 14 will tell wether it will edge higher into 4 yr resistance at 7400, or resume its downtrend.

 

SPX on the other hand gets a little bit choppy, waiting for more news, I still believe this could be possibly a trap.

We are expecting a positive GDP for Germany, but who knows if it releases a surprising negative GDP that will trigger selloff, or a small chance to release more than 1% QoQ GDP Growth that may trigger a rally.

Current Holdings:
DOLLAR:
I have completed my selling on Equity positions, especially in Hong Kong and AU last  August 9, 2012. I may be wrong or right in this decision, but cash is king right now.

70% - cash
30% - high yield bonds

PESO:
80% - cash
20% - Philippine Stocks