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