STI overview

It is really an unexpected 2 weeks for STI to break resistance after resistance to a new high. While our minister was cautioning us of a W shape recovery, at least till now, it’s been shown a V. V for victory for those who has stayed throughout from March.

This period is also a challenging since there’s a few whipsaw here and there. But the market tone is very positive as shown by the negative news of Abu Dhabi did not have any effect at all! This is something I learn (from books) that a bearish news on a uptrending market will have negligible effect. The same for opposite.

Will the capricorn effect take place? We will only know on Jan. But given the current situation, I will definitely place my bet that it will happen. But hor, since everyone is expecting that, there is a possibilities it might not happen.

Think about it…. somewhere in may… there’s a saying

That’s right. Sell in May and go away. How many people do that and ended regretting it for a long long time to come.

Next year will be a important year since we are near the 2008 peak. 3000 points seems to be fairly reachable.

I’m fairly disturbed by the dropping volume in the market for the recent rally. At the same time, I question does the stock price reflect the fundamental of the economy when everything is so uncertain?

Singapore stock sector analysis

Commodity
Uptrend. seems to be turning down. hovering at support
weekly chart: divergence on macd histogram, rsi mfi turning down

Marine
Downtrend. hopefully to get support
adx trendless, mfi rsi below 50%

Property
sideway, macd histogram weekly divergence
rsi, mfi pointing down

Banking
possibly double top
signals for macd, rsi, mfi weakening
waiting for possible support at weekly mfi, rsi
divergence seen at weekly macd histogram

Market correction

STI has started correction on wednesday. And quite expected, NDP effect has took place. Seems like everyone knows about it and starts taking profit on Wednesday. There’s a possibility that there will be correction of another 100 points.

Personally, it would be quite tough cos that would be a trend reversal if it hits a lower low. From trend pattern, it might look like a double top. Hopefully the correction will take place since I did not have too much of a position in the market right now. Waiting to bottom fishing Genting and Golden Agri so as to enter at a better risk/reward.

Time to long in stock

Really fortunate to exit Sembmar (due to MACD divergence) with a small profit though can make another 200 if I don’t itchy finger and trade in the first hour of opening. But since it’s a special day for me. I want to spend my day without worrying about the stock market.

Then yesterday super heng meet up with friend to discuss about stock at lunch time. Then we found golden agri. 4 different stars (support) aligned together for us to feel comfortable to enter the market. So we bought it at 30 cents, which is 1 bid higher.

Today STI went crazy, a lot of them went up by 5% or more with super high volume. Golden Agri went up by 6.6% today. Of cos if I can get Swiber even better cos it went up by 10%. I think if everyday I can be so accurate den I can go open temple then trading… Maybe can earn more money.

Technically speaking, with the US market chionging up today also. It’s a good time to go long. CapitaMall and Olam will be my target. Huat ar!

STI trending sideway

It’s difficult time ahead trying to trade because our Straits Times Index is trending sideway + squeezed between 20 and 50 MA. Must be the window dressing period that makes the market so cautious. A lot of the stocks alr showing bearish signal with lower high lower low.

But it’s time to be paitence. Later kernna whipsaw really super sian. Learning the importance to cutloss is one thing. Knowing not to anyhow cutloss is another. It’s all about positioning.

Rumored that the financial report of company will come out next week of so. Waiting for the chart to show unusual movement aka insider trading.

Remember to put money into your CFD account. Do not naked short!

Head and Shoulder

STI has formed head and shoulder. Looking into the property sector like Capitaland, Kepland and CityDev also showing formation of H and S. Banking sector including OCBC, DBS and UOB also forming the same patterns. It’s important to be cautious the next few days since the right shoulder might be forming

A lot of high volume stock are quite penny stock. This also signify another signal for correction in the market especially when it’s at the fibonnaci support level.

Market Reversal

STI has started to form a trend reversal (lower high) for the past 1.5 months. It can be seen with the general sentiment for property and commodity sector. If for the next 1 month, the market is not able to create new high and instead drop below 2200 level, it is likely the bearish mood will take over.

Another weakness is that even though it’s a mini rally but this rally is not companied with high volume, which means it’s all the retail investors pushing the stocks up and not the financial institute. Whether it’s sustainable, it’s really hard to say for now.

Speculators better to stand aside and let the market gives a clearer trend before joining. From my remiser journal, it seems it’s a clear trend to short the stock. Time to put in money to your CFD account. Remember not to naked short!

Bearish mood for STI

It seems like stock market has become bearish for the past 2 days. And for some counters like biosensors, sgx and wing tai is a good time to short. Do not naked short or else you will be fined 100k SGD.

Accompanied by the falling US maket, tomorrow seems destined to close lower.

CFD account has to be created to do shorting. If not you can always buy some put warrant. Limited risk, unlimited reward. For some, it can be another learning curve to be able to trade using warrant.

Another tip to leverage your finance is to put money in poems account, Any spare cash will be in the money market fund, giving you better interest than bank!

Struggle for Singapore stock market

STI is went past 2,400 points few days ago and its now struggling near the region. Interestingly, it is at the 50% Fibonacci level. The beauty of Fibonacci is that the simplicity and accuracy is without doubt.

How can it be used to trading is still a mystery. Well, at least to me. STI has formed a hanging man, doji star for the past few days. It is all brearish sign. It is going to be a tough time ahead.

For now, having patient is a virtue. Most importantly, I must be able to trade with confidence and be on the winning side. Hope to double my asset within this year.

Having a clear goal, which is to be a professional trader and a knowledgeable engineer is what I wanted to achieve this year, is giving me to the motivation to work harder and harder.

I hope to achieve all I can do in this year.