cad aud

look at both charts [weekly], you will see that there looks like a tendency for both currencies to fall further against their previous lows.

cad - if it breaks out of the 130 mark, which has strong resistance as it was tested 3 times recently, and go north, it will hit 142 then 146 eventually
aud - if it breaks out to the south of the 60 mark, it will hit an eventual low of 42.

you can copy and paste the charts onto a word doc, then enlarge it for a clearer picture.

if the above forecasts are right, does the trend of these two currencies foretell something more drastic in the direction of the global economy?

we will soon know.

DOW, Banking and HSBC

dow
dow jones hit new low just last nite around 6600 which is now closer to my predicted short term low of 6000 earlier [read earlier blogs]

dow had recently fallen two 250+ points sessions, a third one would mean almost 12% decline in a matter of a few days which is surely too much, expect a rebound very soon.

banking
plain vanilla banking in hk and overseas will be very different after this once in a life time credit crunch is over. there are just too many such banks and assets valuation would be much lower then, therefore dont expect a huge rebound in profits of this sector as aging factor will also kick in after 3-5 years in the slumps.

hsbc
given the above, there is no need to subscribe to the rights issue although the i-banks involved undoubtedly will try to maintain some order in hsbc trading prior to book close of the rights.