Well the Asian markets are comfortably numb tonight. Chinese PMI for November came in at 49. This in my mind is a slow down, which was below consensus of 49.8.
The Nikkei continues to mightily struggle, as it continues to be one of the weakest developed Global Equity Indies compared to U.S., China, and Europe.Even four weeks ago, as the market was building upside momentum, it met resistance at the negatively sloping red Moving Average Line, and has since backed off significantly.
ONLY a weekly settlement (Friday close) above 9115 would attract concerted buying at this juncture.
Keep a close eye on Asia, economic indicators look like we may see more than a soft landing which will certainly do more damage to U.S. markets.
A couple weeks ago we recommended getting long both industrial and material names based on a soft landing in Asia. If you have a gain we recommend reducing risk in CAT (Caterpillar), DG (General Dynamics), FCX (Freeport-McMoRan), MON (Monsanto) and MOS (The Mosaic Company). As we know, Industrials and Materials are must vulnerable to the Asian growth story.
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Source: Forbes
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