Dear Traders,

On Thursday night and Saturday morning , John Carter, managing editor of Market News International gave an insightful presentation on the European debt crises and its effect on the world economy and Asia.

This was a private event sponsered by Phillip Futures Singapore

so the information presented was much more objective than the propaganda put out every day by the talking heads of CNBC and Bloomberg.

He backed up his presentation with over 80 slides detailed with charts and statistics.

Bottom line: The Greece problems will be resolved but they will take more time to resolve than most expect. The reason is that policy in Europe is made by consensus and all 16 members of the EU must agree before something can be done such as quantatative easing. China by contrast can amend monitary policy by decree- no consensus is necessary.

The same is true for the US Federal Reserve.

I asked him if he were an asset manager how would he allocate his money? He said, overweight Asian equities , precious metals and oil. Avoid financial shares especially in Europe, UK and US.

The Dow crashed over 1000 points Thursday and recovered near the close down 340 points. The news media reported a computer glitch and trader errors as causes of the event.

Keep in mind the real truth is never reported by the media when insiders manipulate the market.

Professionals who dominate the market don’t make these mistakes. Everything they do is by design. They engineered a market break- bear raid- by short selling ETF inverse funds which do not require an up tick to sell. The onslaught of short selling was so great they overwhelmed any resting limit orders/ stop orders on the way down. Hundreds of thousands of stop orders were triggered. The sheep were slaughtered.

When the selling was exhausted who do you think were buying at the lows ? The same hedge funds who engineered the break.

These hedge funds used the background of extreme bad news such as the Greek problem, hung parlament in UK, oil spill in US to spring the trap.

The media will never tell you this. That is why it is important to understand market structure and how to manage risks.

One reason why the KLSE was spared from the onslaught is that short selling is forbidden. Hedge funds can not attack the KLSE with this sort of manipulation. In fact the KLSE was up 3 points

We are offering a Master the Markets foundation course next Mon/ Tuesday 17 18 May at my office at Phillip. Graduates of the foundation course may reattend FOC- let Dolly know as we have limited seats. Please bring your old notes, if you do not have cost of notes is RM 50.

Dolly’s number is 03 42524149

Our main course Master the Markets- Price and Volume Trading will be on 19 20 21 June at the Dorsett Regency Subang. We have added a comprehensive module on Tests with exact entry and exit criteria.

This is a completely new syllabus with up graded content.

“You only need to trade tests to make a living”, David Weiss, hedge fund manager.

If you wish to reattend it is FOC to graduates (hotel rate apply thought)

Trade well and put the probabilities in your favor
Bill