US market

Tonight US will release it's job market data. I feel that tonight's data will be the most important indication for the market. Let's take a look at it's chart.

Currently, Dow Jones index is sitting just below the major downtrend line. If tonight's job data delight the investors, it may break the downtrend line and things may turn over to the bull side. STI may follow on Monday, a gap jump above the downtrend line. But if tonight's job data disappoint the investors, we may face extended period of under the downtrend line.

US markets lead the way. What's worry me is that current futures are indicating the bets are siding the bull side. When everyone is betting on the green side, it usually doesn't turn out to be green. Will this happens again tonight?

Market analysis, Capitaland

The analysis is for my friend, Joe. Let's take a look at STI situation first.

For the downtrend wave to reverse, the major downtrend line stated in the chart (started from August) have to be broken. It looks like at around 2800. Currently, the inverse H&S formation looks like going to form. This is a bullish formation but it needs further confirmation. For example, it breaks the neckline of 2905 or breaks the major trendline. At immediate short term, it has not broke the 10DMA of 2723. Any rallies may just be a short term rebound.

Capitaland

Currently, Capitaland still refuse to break $2.54 even Dow Jones rallied 293 pts yesterday. This price is the short term 10DMA. So i feel that the rally is not strong enough. Personally, i will only buy it as near to $2.35. The risk will be lesser. Another point of entry will be the breaking of $2.54, the formation of inverse H&S may happen.

This is just my point of view, Joe. You may have a different view.

Dow Jones

From the above DJ chart, we can see the status of the market at the moment. It is trying to break out of the critical trendline. 12200 will be a key breakout at the moment. It seems like waiting for something to trigger the breakout. The Asian markets had been lagging behind the US market.

Please take note of the breakout, it may mark the end of recent downfall.

Capitaland

Sell Capitaland at $2.74 on 31st Oct 2011; Buy at $2.49 on 23rd Sept

Trade decision conditions:

1. Expect a pullback from STI after rallied for more than 300 pts
2. Time to log some profit from Capitaland as i faithfully held it for a month

Profit: 10%

Dow Jones analysis

Dow Jones index rallied 330 pts last night. It is a very important rally, breaking the downtrend channel. Please refer to the below chart.

Shortists may need to practice extra cautions. The 50 DMA was broken, the first resistance will be 11716. If broken, the 200 DMA will be challenged. Personally, i do not expect DJ to rally consecutively 8 days to touch 11716. I expect a sideway channel to happen at the moment. November month will then be the key period.

Noble Group

Sell Noble Grp at $1.355 on intraday trade; buy at $1.31 on 6th Oct 2011

Trade decision conditions:

1. Astonishing profit made in 1 hour;
2. Take profit at 10DMA;
3. This trade helps me to recover all the SembMar losses and ended up with a slight profit

Profit: 3.4%

Noble Group

Buy Noble Grp at $1.31 on 6th Oct 2011

Trade decision conditions:

1. STI triggered a rebound
2. Looking for it to challenge 10DMA ($1.35)
3. Potential target price at $1.47 if 10DMA is able to clear; it may be just an intraday trade

Stop: $1.28

SembMar

Sell SembMar at $3.22 on 6th Oct 2011; buy at $3.13 on 5th Oct 2011

Trade decision conditions:

1. STI pushed for a rebound.
2. I want to switch cheaper stocks for longer term (important skill sets in trading)
3. Recover some of the earlier losses

Profit: 2.5%

SembMar

Buy SembMar at $3.13 on 5th October

Trade decision conditions:

1. DJ made a remarkable turnaround; short covering at the last hour
2. STI may have reached a temporary bottom of 2531; expecting volatility at 2530 and 2600
3. Third attempt on SembMar; i trade like a hunter, never give up on the prey.

Stop: $3.05

SembMar

Sell SembMar at $3.07 on intraday trade; buy at $3.12 on 4th October

Trade decision conditions:

1. Stop price is hit; follow the rules stricitly
2. STI look like going for 2380 which i feel is the bottom

Loss: 1.5%

SembMar

Buy SembMar at $3.12 on 4th October

Trade decision conditions:

1. Successfully defend my stop price at $3.10; buy back at $3.12
2. STI make another new low again
3. Still no signs of government announcing retrenchment and paycut

Stop: $3.07

SembMar

Sell SembMar at $3.08 on 4th Oct 2011; buy at $3.19 on 3rd Oct

Trade decision condition:

1. STI dropped to an unknown territory of under 2600
2. SembMar stop is hit;

Loss: 3.6%

SembMar

Buy SembMar at $3.19 on 3rd Oct 2011

Trade decision conditions:

1. STI hit a new low of 2605;
2. SembMar hit a new low of $3.15; the chance of a rebound is higher after making 2 new lows in 2 trading days
3. Still no news of retrechment and pay-cut news; meaning that it is just a correction

Stop: $3.10

STI status

As i was posting this update, STI created another new low of 2614. At this point, STI had entered into the bear territory. The news and papers are fuelling the public with a lot of bad news, draw the picture as bad as possible. The plight of our country entering recession, send the fear to everyone's heart.

Personally, i am still holding on the Capitaland position, strongly believe that it is just a big correction. The reasons are that i only see a slow down in the growth; there is no pay-cut across the boad; there is no major retrenchment in the job market. Why there is no posting of thousands of jobs lost in the news like the one in 2008? If we are to go back to the 2008 crisis, you will see real bloodshed in the market. This means that most of us will lose our job and pay-cut scheme will be among the hot topic.

Current market situation is a very tough situation for novice traders. But it provides a good opportunity for us to test our skills. Traders with traditional way of trading will fail in this fast and volatile environment. We will need to upgrade ourselves and this market provide us this opportunity.

Capitaland

Buy Capitaland at $2.49 on 23rd Sept

Trade decision conditions:

1. STI had 2 consecutive huge selldown and created a new low of 2659 which i believed that it may be the lowest.
2. The risk to take a position minimized
3. Capitaland defended it's 2 week's low despite the major selldown
4. Property sector is due to a rally

Stop: $2.30

Genting

Sell Genting at $1.71 on 16th Sept; Buy at $1.645 on 14th Sept

Trade decision conditions:

1. STI rallied for consecutive 2 days; expecting a slight pullback
2. Genting touches the resistance price of $1.72; expecting difficulties at this level

Profit: 3.5%

Genting

Buy Genting at $1.645 on 14th Sept

1. Defend it's 10DMA of $1.64
2. STI hit a new bottom
3. 3th down day for STI, minimize the risk

Stop: $1.63

Genting

Sell Genting at $1.65 on intraday; buy at $1.67

1. Sudden reversal reaction on STI
2. Genting cannot defend the $1.66 price

Loss: 1%

Genting

Buy Genting at $1.67 on 6th Sept

Trade decision conditions:

1. STI was hit down heavily yesterday but a higher low is seen
2. Successfully defend it's 10DMA of $1.64, expect the short-term 10DMA to hold
3. Broke out of 30DMA of $1.66

Stop: $1.61

CityDev

Sell at $10.60 on 31st Aug; buy at $9.80 on 22nd Aug

Trade Decision Condition:

1. STI reached near to the deciding resistance of 2870. I am not sure whether it will break it or not, but i decide not to bet on it.
2. Rally has been going on several days.
3. Emotionally, the profit is tempting enough to take.

Profit: 8%

CityDev

Buy CityDev at $9.8 on 22nd Aug

Trade Decision Conditions:

1. STI may reach it's bottom at 2680 - 19% correction. If it hits more than 20%, a bear territory. The risk to enter here is reasonable
2. CityDev hold $9.70 well enough. The risk to take up the position is smaller now.

Stop: $9.65

Biosensors

Sell Biosensors at $1.375 on 1st Aug; buy at $1.27 on 22nd June

Trade Decision Conditions:

1. Biosensors refused to break $1.41 despite STI breaking 3200
2. Logging in some profit in the global volatility

Profit: 8%

Biosensors

Buy Biosensors at $1.27 on 22nd June

Trade Decision Conditions:

1. STI has rebound from the support trendline connecting the 2010 correction low and 2011 March low.
2. Biosensors have defended well from the correction. The 10MA is turning up, and $1.27 is the support of this line.

Stop: $1.20

NOL

Sell NOL at $1.87 on 16th May; Buy at $1.91 on 10th May

Trade decision conditions:

1. NOL triggered the stop
2. Bearish outlook on US markets and STI

Loss: 2%

NOL

Buy NOL at $1.91 on 10th May

Trade decision conditions:

1. STI staged a critical rebound last Friday
2. NOL breaks 10DMA of $1.87 and the 10DMA line is turning

Stop: $1.85

STI

STI suffered a pullback on 3rd May 2011. With lots of events happening - Elections, US markets facing resistance, high oil price, a correction seen to be inevitable. Month of May has always been a period to avoid in the stock market.

The 3120 support which everyone claimed to be a critical one, may be difficult to hold. I am looking for the index to fall toward 3045. Anything under this point will be a good chance to enter. The channel made the index looks extremely bearish. Personally, i feel that it is not possible for the index to fall lower than 2919 (Previous low). As i see the second half of the year to be bullish, a new low is very difficult. Let's be patient and i post more stocks to be considered to ride the wave.

STI

Yesterday, i mentioned about US bearish outlook affecting STI performance. I went back to redraw the STI chart to have a good look of what's happening.

By redrawing the whole picture, we can see that STI is on the edge of the resistance line of the channel. Breaking of the channel will indicate a bullish sign. With the bearish US outlook, I feel that the resistance will hold for the mean time which prompt for a pullback. Will it have a correction to the lower support line? With the Singapore election coming, i feel that it is less likely. Watch out for 3120 level and 3080 for a rebound.

Will US affect STI performance?

After i sold off my stocks last week, i was watching patiently to see whether STI will continue it's run. The global situation may play a part in it's performance. Let's take a look at S&P.

The double top looks scary for me and the PPO triggered a 'sell' at the moment. It's a bearish chart, most likely will break the MA(50). If there is a major correction in US, what will happen to STI?

Will STI hold well because of the May's election? I will do a proper analysis on STI chart on the next few days.

STI status

Above is the STI showing the short-term downtrend channel. It clearly shows that STI is approaching the upper resistance line. It is around 3225 area, and i believe it will stage a pullback over there. Risk will be lower if you start the shorting over this area. But from now till that area, it is still about 50 points away. So just hang on, wait for Mr. Market to tell you what to do.

Weak counters: Wilmar, KepLand, DBS
These counters appeared to be weak but the wave support them. At the mean time, it is not advisable to enter any shorts yet. Follow the old saying 'Trade with the trend', i will not react yet till Mr. Market says so. Again, these counters are based on my own analysis. Please do your own homeworks before any trades.

Take profit

Sell OCBC at $9.61 on 6th Apr; Buy at $9.07 on 21st Mar
Sell SGX at $8.45 on 6th Apr; Buy at $7.65 on 22nd Mar
Sell Ezra at $1.81 on 6th Apr; Buy at $1.63 on 14th Mar

Trade decision conditions:

1. STI is not far away from the resistance point. Although there is still some space, i prefer to harvest my profit first
2. A pullback is very highly possible unless the global situation improve

OCBC profit: 5.5%
SGX profit: 10% (thanks to the failed merger)
Ezra profit: 10%

Overall profit: 25.5%

A brilliant 3 week trading, having seen STI created such a big opportunity for me to gain. I will be waiting for the pullback.

Moving stocks, Lagging stocks, STI

For the past 1 week, i had seen some stocks turned 'green' on my indicators. But i did not react to buy them as i am sticking on to some funds for any pullbacks. I also seen some stocks lagging behind the market.

Moving Stocks:
Biosensors, Capitaland, Kep Corp, Cosco, XinRen, Yangzijiang, Noble, Swiber etc. There is still much more on my list.

Lagging Stocks:
Wilmar, KepLand. Especially Wilmar, it has indicated a 'sell' based on my indicators. But the immediate market trend is up. It is not advisable to trade against the trend.

I expect the STI to be moving up and down between the neutral line shown on the chart for the mean time. The upper band will be between 3120 - 3310 and the lower band will be between 2920 - 3120. It will stay on this channel as long as the global situation stay still. US job employment has improved. Once US market moves up, i will expect STI to move out this channel to a new high. Even China market is waiting for the situation in US. Once Fed increase the interest rate based on the improved economy, it may be the driver for the bull to move. Let's wait n see, listen to Mr. Market.

My portfolio

Currently, i have some stocks with me - Ezra, OCBC, SGX and was riding with them since the bottom is formed at 2919. My wave theory has surpassed many of the market analysts' prediction so far. Many of the analysts were looking for STI to go for another leg down, basically telling Mr. Market what to do.

Let's look at the current status of STI.

3120 will be a critical level to look at now. Mr. Market is waiting for something before moving. At this moment, most of the blue-chips just stopped below their resistance level. If STI cross the 3120 point, the next resistance level may be at 3210 - 3230 range. But if it pull back, 2965 will be the support.

FirstRes

Sell FirstRes at $1.32 on 28th Mar; Buy at $1.29 on 18th Mar

Trade decision conditions:

1. STI has reached a junction on whether it wants to move forward or u-turn
2. FirstRes never move up much even STI surged 5% last week

Profit: 1% (cut-off those weak stocks)

This week is a critical week on the direction of STI. Please be extra cautious. Happy trading!

STI status

STI rallied for 4 days after hitting the bottom.

From the chart, you can see that the immediate trend has not switched. There's no need for celebrations for the bulls yet. 3120 is a very critical level in order for the tide to change. If 3000 is broken, i will see 2900 to be tested. So hold tight, move with the tide if necessary.

SGX

Buy SGX at $7.65 on 22nd Mar

Trade decision conditions:

1. Technically, SGX cross it's 10DMA ($7.56)
2. The price was now at the level before the last surge to $10.20
3. Generous payout on dividend
4. MACD crossover indicate a 'buy'

Stop: $7.37

OCBC

Buy OCBC at $9.07 on 21st Mar

Trade decision conditions:

1. Using the Elliott Wave theory, personally i feel that STI have reached the bottom last week. Refer to the chart.
2. OCBC chart hit a low of $8.94 but managed to make it back to the important level of $9
3. Dividend of $0.15

Stop: $8.92

FirstRes

A couple of stocks become potential 'buy' on my radar. But i want to take one at a time.

Buy FirstRes at $1.29 on 18th Mar

Trade decision conditions:

1. Dividend of $0.019
2. Cut across the 10DMA ($1.28) and stay above it
3. STI is under 2980, anything under this point i considered as oversold
4. At the support level of the MACD

Stop: $1.20 (new low)

Biosensor

Sell Biosensor at $1.11 on 17th Mar; Buy at $1.14 on 14th Mar

Trade decision conditions:

1. Stop price is hit
2. US market is facing a massive sell-off; DJ may drop to 11000 points (200DMA)
3. The global markets are worsen by Japan Quake conditions
4. STI is trending below 2950; the STI bottom is unsure if US market is going to fall further.

Loss: -2.6%

I still side the bulls as i feel that the market is facing a technical correction. The long-term trend has not changed yet.

Biosensor, Ezra

Buy Biosensor at $1.14 on 14th Mar
Buy Ezra at $1.63 on 14th Mar

Trade decision conditions:

1. STI dropped below 2980 again and the more it got near to 2900, i feel the risk is minimised.
2. Japan Quake rocked the global stocks which i think it was just temporary.
3. The above 2 counters held quite well despite a 90-points down attack.

Stop: Biosensor ($1.10)
Stop: Ezra ($1.60)

NOL

Sell NOL at $2.01 on 14th Mar; Buy at $2.07 on 10th Mar

Trade decision conditions:

1. Stop price of $2.01 triggered
2. STI may be heading toward 3000

Loss: 3%

STI update

The Japan earthquake had thrown Nikkei 5% down on the first day of trading this week. Many Japanese had lost their homes and loved ones. I hope that they will recover from this devastating natural disaster soon.

Back to trading in Singapore market, the earthquake have not yet hit STI to a new low. A lot of counters had turned into a buying state. I am waiting for the bears to try harder to bring the index down to 3000. In this way, it will test the buying signal of various counters. Till then, i will post the counters that hold well and most likely to move up.

Let's wait patiently and see how the bears react.

STI

I had anticipated the sell-down in the US market. But the sell-down was still not as hard. It just merely crossed it's 50DMA for DJ. I had mentioned that the sell-down would drag down the STI, that's why i had taken profit early (Refer to my earlier post).

The STI picture is now more clearer. As i was writing this post, STI had just hit a low of 3045. Personally, i feel that the 3000 point will be the buying time. If it hit 3000 point, it will be a shopping time for me.

Right now, even STI goes under 3062(200DMA). The volume is very thin, showing that the big players are sitting on the sideline. Hoping that those fear sheeps will throw their money to them. I feel that it's a right time to select stocks that holds very well. Please be extra cautious on selecting your stocks.

NOL

I was lucky enough to survive the pullback today, having taken profit yesterday. Overall, i felt that the uptrend is still intact.

Buy NOL at 2.07 on 10th Mar 2011

Trade decision conditions:

1. The RS is strong as related to STI
2. Cross the 10DMA of $2.06 and hold firmly despite the STI pullback

     3.   On the uptrend line as shown on the chart above, the target of 30DMA ($2.14) is possible

Stop: $2.01 (cutting through the uptrend line)

Profit taking day

Sell Ezra at $1.77 on 9th Mar 2011; buy at $1.69 on 3rd Mar
Sell Rotary at $0.93 on 9th Mar 2011; buy at $0.9 on 24th Feb
Sell Capitaland at $3.37 on 9th Mar 2011; buy at $3.36 on 3rd Mar

Trade decision conditions:

1. STI testing the resistance level; the direction will be unclear
2. US correction situation; not comfortable with it at this moment

Profit: 4.5% (Ezra), 3% (Rotary), no profit or loss (Capitaland)

Overall profit: 7.5%

OCBC update

Sell OCBC at $9.47 on 8th Mar; Intraday trade at $9.30

Trade decision conditions:

1. Surprise by it's sudden surge to the near resistance of $9.50 - $9.55
2. Tempted to take profit; affected by the situation in US
3. Near resistance at $9.50 - $9.55

Profit: 1.8%

OCBC

Buy OCBC at $9.30 on 8th Mar

Trade decision conditions:

1. Dividend of $0.15
2. It has been my most preferred bank than the other 2
3. Technically, it holds firmly above the 10DMA ($9.27). And the 10DMA is turning up.

Stop: $9.10

STI update

Let's take a look at US DJ situation.

A correction is at the corner, 50DMA (11964) is going to face the battle. This is contrary to the Asia mkts. From last Friday till yesterday night, DJ had dropped more than 150 points. But STI has not responded to it.

The technical signs are showing the positive signs. Firstly, STI is able to cross the 200DMA. Secondly, the MACD is showing the 'buy' sign. The immediate sign see 3120 as the main resistance. I expect the STI to face some volatility over this area before it continues the bull run. Of course, US situation must get better too before the bull run can continue.

Global market

The picture looks a bit unclear now. China market has rallied to test 3000 points and US markets are facing some corrections. At my point of view, it will be difficult for China market to cross 3000 hurdle firmly until US finishes it's correction.

So what will happen to STI? Personally, i feel STI will face a bit of pullback after recent rebound. I am still holding a bit of my stocks as i believe a real rebound is around the corner. For every pullback in STI, i will look for chance to enter.

Capitaland

Buy Capitaland at $3.36 on 3rd March

Trade decision condition:

1. Weekly chart is showing engulfing sign
2. Cross the short term 10DMA.
3. Generous dividend payout every quarter
4. The largest property counter in STI

Stop: $3.24 (can be a long term trade)

Please take note: The government intervention to the property market may happen again to cool down the property price.

Ezra

There was a bit of volatility on STI recently, due to a minor correction in DJ. In the short term, i would feel DJ may face further sell-down. So STI may also face a bit hiccup on that. Personally, i felt that it was a consolidation state for STI. For every sell-down, i would buy in.

The immediate support i feel now is 3025. We may not see another selldown to 2980 again. At this moment, we may see STI trying to test 3050 (200DMA) again.

Buy Ezra at $1.69 on 3rd March

Trade decision conditions:

1. STI consolidation state
2. Technically, Ezra has crossed the 10DMA and 30DMA. The 10DMA line is making a u-turn.
3. Ezra has a PE of 13.8x and yield of 0.8.
4. It is very near to the 52 week low of $1.50

Stop: $1.60

Profit taking day

Sell Singtel at $2.99 on 1st Mar 2011; buy on 25th Feb 2011
Sell Golden Agr at at $0.68 on 1st Mar 2011; buy on 28th Feb 2011
Sell CityDev at $11.20 on 1st Mar 2011; buy on 24th Feb 2011

Trade decision conditions:

1. STI rebound up to 3040; expects it to face resistance over this range 3040 - 3050
2. Expects STI to go under 2980 again. As such, i can pick up these stocks again
3. Short-term trading as i am trading against the short-term downtrend

Profit: Singtel +4%
Profit: Golden Agr +6%
Profit: CityDev +3%

Overall Profit: 13% (Achieve in 2 weeks)

Golden Agr

Continue on my buying spree as STI falls

Buy GoldenAgr at $0.64 on 28th Feb 2011

Trade decision conditions:

1. As inflation goes up, expect the comodities to benefit from the increase
2. Technically, it had hit the support of $0.62. Expect the selling to stop at this level.
3. STI is at the verge of rebound after hitting under 2980 last Thursday.

Stop: long term investment

Singtel

Going into a shopping spree, this time is for long term trade

Buy Singtel at $2.88 on 25th Feb 2011

Trade decision conditions:

1. Main component of STI, and the main index is under 2980
2. Technically, the long term support is at $2.85
3. Fundamentally, Singtel give consistent dividends and dominate the local market

Stop: No stop - long term trade (for accumulation)

Is this the best that the bears can push (2965)? Show me the strength, can you push down to 2900? so that i can accumulate some cheap blue chips.

CityDev

Buy CityDev at $10.82 on 24th Feb 2011

Trade decision conditions:

1. STI falls below 2980 which i feel is the bottom, anything below this point is a long-term trade
2. Dividend of $0.18
3. Technically, the price is travelling very near to 10DMA($10.8). I expect it to cut across any time.
4. Keep for long term.

Stop: $10.54 or may hold for long term.

Rotary

Buy Rotary at $0.90 on 24th Feb 2011

Trade decision conditions:

1. STI almost hit 2980 which i consider as the bottom for the current correction.
2. Rotary is giving 0.38 cents dividends
3. Technically, Rotary had hit the support of $0.87 yesterday (refer to the chart)
4. Fundamentally, the profit and revenue are in uptrend status

Stop: $0.86 (Support at $0.87)

Wilmar update

Stop at $5.20 on 23rd Feb; buy at $5.36 on 18th Feb

Stop decisions:

1. Follow the strategy to execute the stop; discipline
2. Wilmar forms a new low
3. STI broke 3000 points.

Loss: -3%

I will say anything below 2980 for STI, it's the buy time. Let's wait n see, i will start to shop for cheap stocks.

Midas update

Stop at $0.78 on 22nd Feb 2011; buy at $0.83 at 16th Feb 2011

Stop decisions:

1. The consolidation bottom of $0.785
2. STI continues the third leg of short downtrend

Loss: -6%

Wilmar

Buy Wilmar at $5.36 on 18th Feburary 2011

Trade decision conditions:

1. Commodities - Inflation will push up commodities' prices
2. Break $5.35 (10DMA)
3. Break the consolidation top of $5.36
4. STI is very near to 200DMA, selling sentiment is at near end.
5. Singapore Budget Day is today!!! Expect STI to move.

Stop: $5.20 (Support: $5.25)
Target: Immediate target at $5.52; if break it, will continue to hold it

Midas

I decide to learn from Trader Alex to post more specifically on the trade.

Buy Midas at $0.83 on 16th Feburary 2011

Trade decision conditions:

1. Leading manufacturer of Aluminium Alloy.
2. Technically, it almost hit the bottom of the long term sideway pattern (refer to the chart). The risk of taking a buy trade is minimum.
3. STI is at 3075, the selling sentiment is at the near end.
4. Singapore Budget is 2 days away.
5. Long term trend: Bull

Stop: $0.78 (Support: $0.79)

STI downtrend status

The STI downtrend come down to a halt for a breather,

As stated on the above chart, there is 2 downward trend at the moment. I will expect the third one to happen in weeks time. As we can see, the 200MA is not tested yet. I will expect STI to test it's 200MA. And it is around 3040 at the moment. Personally, i feel STI will test 3000 major support.

STI support broken

STI support broken for the first time in 6 months,

3120 is a very critical support. Since it is broken, stop loss must be there to minimise the loss. Counters such as Noble, Rotary, Genting which i had mentioned yesterday did not drop much. So the stop will be minimum.

Now it's the time to predict the bottom which is a fun thing to do. From the chart above, it seems to be a free fall is in place. The first level of immediate support will be at 3069 & then come the major level (200DMA) at 3035 - 3040. I believe that the 200DMA shall be able to hold. Another bet can be placed near that level for a long term trade. Again, make sure a proper stop must be in place.

STI status

It's time to take a risk, the odds will be better at this time.

As i was writing this report, STI had hit a fresh low of 3127. It is very near to the support level as stated in the chart above (3120). The risk will be minimum and the odds of winning seem to be higher. This is supported by the PPO on the chart. So far, on this bull run, it hasn't break -0.4 level (12 days). The level has reached -0.3, which means a rebound is around the corner.

I am looking at some counters such as Noble Grp, Wilmar, Rotary. Trade at your own means. Wish everyone good luck and a prosperous year in the stock market. :)

Successful traders

To me, stock trading is just another form of gambling. Some view it as investing based on the companies' reports. Using the reports, you place your hard-earned money on the stock price. Personally, i view the reports as the odds which tell you how much risks you are going to take. Isn't it the same as placing your money on the casino tables? Same to the technical traders, we are using the charts as the tools (odds) to gamble on the stocks. There's no difference between investing and trading, just that the usage of tools is different.

To be successful in trading or investing, we must first train ourselves as professional gambler. In fact, professional gamblers have a clear vision in terms of mindset than traders or investors. The Pro gamblers will always accept losses as parts of the game. When they entered into the casino, they don't expect themselves to win a big windfall. They always keep their losses small. It's a probability game, so there is no sure-win kind of game. In trading, we shall adopt the same strategy as the Pro gambler in order to succeed. Ride the winners and leave when the loss is small.

Enjoy the trading process rather than the outcome. It has to be your passion. Something that you want to be in your life - a trader. Only your passion gives you the motivation. If not, you will find yourself giving up along the way. Don't let the trading outcome affect your emotions. In the long run, you may gain some outstanding rewards. In the trading process, mistakes are the invaluable components which help you to learn or become more experienced. The trading world will carry on changing - new ideas, new counters or new rules. We must always adjust our mindset to play the game.

STI

After days of gains, people have been waiting for the pullback

I must say that this period is meant for traders, as it was pretty choppy from last Oct till now. For STI, 3218 is the point where i will look for support. Although the wave had been choppy, some stocks still moved well. Just have to be careful on the selection, you should be able to make some profit.

Rotary Eng

Fresh from the oven, a newly breakout counter

Rotary is a slow moving counter. It has just broken out of the resistance price of $1.05. More significantly, the resistance is broken out with strength. You can observe it from the volume. Accordingly to the theory, a true breakout has to accompany with volume. Rotary has fulfilled this criteria. Again, trade at your own risk.

Midas

Try to pick some stocks that broken out of the consolidation,

I will be looking at $1 as the next resistance for Midas. And again, this is based on my own analysis. Trade on your risk.

Happy New Year

Wish everyone has a good year in the stock market for year of rabbit

The H&S is not valid, very lucky indeed. I managed to get some stocks at 3120 point, particularly the index stocks. Now as i am writing this, the STI is trading above 3220. It will become a bit tricky as the trend now is a sideway trend. It has been hanging around between 3120 & 3220, in a narrow range. But i have seen some stocks moved quite a substantial amount e.g. Gallant, Kep Corp etc.

The index may be hanging around the same range, it will take some skills to earn during this tough period. Again, trade at your own risk. Always keep an eye open during this period.