FINE, PEOPLE... Been a while.
Standing by the beauty of Charita Beach, Aimee would speak of how 2009 will linger you around. Repetition is unacceptable to me, so I am making it short and simple. With extreme oversold prices nowadays, the good news for you is that the potential rebound to range of 1400 - 1800 is very close to you for JCI and 11000 for DJI. One thing is that it is attributed the current overdiscounted prices, NOT because of fundamental factor. This pronouncement emphasizes that as at certain level somewhere around this range, the global market will suffer its second fatal bombing assuring DJI around hanging rope 6666 for DJI. How Aimee? It is because the economic slowdown will begin to bring about middle to long term effects. As the maturity in US Treasury and banking solvency find its toughest position, it will trigger the investor confidence goes to the South Pole. Why Aimee? The final weapon of the Fed's interest rate cut has been cornered approaching 0. In other words, major deflationary condition is indisputable. This is still the impact of carelessness in credit bubble and missrating to financial, banking, insurance, and major corporations in the US. Worst scenario Aimee? Parabolic drop, crossing line of the previous bottom. Indonesia Aimee? The credit boom in Indonesia may take this 1 - 2 years ahead. With 120 Billion US dollar domestic credit circulation, 50% of them is possibly going to create liquidity and solvency. Corporations Aimee? As most major corps use Operational Expenditure and Capital Expenditure from credit, when they set themselves default, credit will become extremely difficult to obtain. Their credit should be restructured which is not feasible, since order, production, employees and even main capital can even be swallowed as well. Message Aimee? Please everybody do your homework, the old adage still goes: Bull makes money, bear makes money, AND the pigs get slaughtered. Happy new year 2009... At the end of the day, what goes down will finally emerge. RATU SIMA, THE UNITED KINGDOM OF KALINGGA
