Asian equities show classical top and momentum divergence – North Korean nuke news acts as catalyst
Peter Oberois
Oct. 17, 2006

For quite some time the Asian equities are showing signs for classical top formation. The super growth in China and India has reached a level where the inflation genie is becoming uncontrollable. China has taken some very specific anti-inflation measures. India is in the process. Reserve Bank of India is worried although finance ministry shows ecstasy at the raging bull.

The South Korean and Japanese market actually show the momentum divergences. The reason may very well be the security concern on North Korean nuke test. But stochastic and other analytic models are showing extreme signs of overbought characteristics.

The Japanese markets dependence on US consumer confidence index is noteworthy. The markets at the top typically lose its own momentum and start looking at external indicators.

An analytic index that measures smart money in-flow show severe draw down from Asian equity markets.

The Asian equities are down on North Korean nuke news – North may be preparing for the second test. But the analytical models are saying that can just be an excuse. The smart money has left. The bulk money now is eager to jump out.

Asian equities show classical top and momentum divergence – North Korean nuke news acts as catalyst
Peter Oberois
The Asian equities are down on North Korean nuke news – North may be preparing for the second test. But the analytical models are saying that can just be an excuse. The smart money has left. The bulk money now is eager to jump out.
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