Trading Idea forWeek of 28 Jan 09

STI: STI has broken 1716 support level. Obama's inauguration and the budget day did not provide the much needed boost to the market. However, DJIA has been rather resilient, amidst all the negative news. From the technical observations, STI is oversold and searching for a bottom/trend reversal. Will this be a temporary pause to the bear trend or a reversal of trend? A breakout above the 20MA resistance will provide good prospects of a trend reversal. While a failed breakout will enbolden shortist to ride the bear trend. Tonight's dow performance will be a very key deciding factor as it will provide the leads to how much the Hang Seng Index need to catchup, after a few days break for the Lunar New Year.

My Stock Pick from Indicators Watch:
LONG on UOB, SIA, SGX, Sembcorp, Keppel Corp

Disclaimer: My assessment of STI is for fun reading only. It is not an inducement to buy or sell nor an investment advice. By reading this blog, you have agreed that I shall not be responsible for any profits or losses based on the information provided.

Trading Idea for Week of 19 Jan 09

A Look At the Big Picture - DJIA: The DJIA typically leads the market sentiments around the world. After a bout of negative news, bearish sentiments finally come to an end. Confidence is building up in Obama's team to reverse the economic crisis. Bullish reversal indicators are spotted om the DJIA chart. The long hammer supported with high volume on Thurs showed a resilient test of the 8196 support level. Fri's high volume and white candle close of 8281 provides further confirmation of bullish reversal. In the next few trading days, DJIA will be attempting to break the 20 and 50MA resistance at about 8600. Amidst all the gloomy economic figures and negative earning reporting, a break above 9000 (which will also be the 100MA resistance) will provide a very strong indication of investors' confidence and see the start of a bull rally. However, if the test at 20/50MA fails, the DJIA will likely go into a bear trend to test last Thurs' support level. We are in a critical crossroad in the next 2 weeks. Will the DJIA break the resistance? I'm not very hopeful at the moment.



STI: 1716 is a key support level to watch. The bear is taking a breather with a white candle closing on Fri. In the coming week, STI will take cue from DJIA and likely to be running on the "Obama" and "Singapore Budget 2009" steriods. Why do I say the market is on "Steriods"? Well, it is likely to be short-lived, unless the DJIA is able to break the 9000 resistance. The quarterly and annual earning reporting season is here. Figures will be dismal. However, investors are likely to brush aside those negative news and cheer to Obama and our Budget as "Good news" will prevail in these 2 events. After the euphoria is over, many would come to their senses and realise that the market has been overpriced. This is the next big drop that I'm waiting for. Meanwhile, I'll be riding on the steroids to look for LONG opportunities in some of the Blue chip counters. However, I'll square off my positions by end of the week as the long CNY holiday poses too much uncertainty. The next few trading sessions will likely see STI testing 1800.

My Stock Pick from Indicators Watch:
LONG on UOB, SIA, SGX, Sembcorp, Beauty China & Raffles Education

Disclaimer: My assessment of STI is for fun reading only. It is not an inducement to buy or sell nor an investment advice. By reading this blog, you have agreed that I shall not be responsible for any profits or losses based on the information provided.

Trading Ideas for Week of 12 Jan 09

STI: SII hit resistance at 1950 last Monday, this was confirmed Tues' failed attempt to break the resitance level. This resistance appears to be a very strong one as very high volume has been observed. The subsequent retracement saw STI broke its 1820 support level. Looking at the big picture, the STI is nearing its trend support line, this is not likely to hold with the poor Dow's showing in the last few trading days and bearish indicators. The Obama effects is losing steam...It will next test support at 1732. If the STI rebounds, it is likely to hit resistance at 1860.

Trading Strategy: I'll be looking at SHORT positions for the week. Many of the blue chips counters have also broken its uptrending support levels and is turning into bearish territory.

Trading Idea for 8 Jan 09

STI: STI has hit resistance at 1842 and is doing a retracement towards the 1820 support level. It has formed a higher hig, the next watch item is to see if it rebound from support level at 1820 thereabout to form a higher low. This is likely to take place today or tomorrow. I'll be watching for candlestick reversal patterns for confirmation. Watch out for white candles.

My Stock pick: Many of the blue chips counters have also hit resistance and retracing towards suppport level I'll be looking out for SGX to rebound from its support.

Trading Idea for the Day - 6 Jan 09

STI: There was good showing of volume, which was a sign of investors coming into the market. The STI achieved its near term target and broke the resistance at 1907. Key indicators shows signs of bullishness. However, the STI has hit the upper bollinger band, possible retracement could be encountered in the next few days. I'll be watching to see if support at 1907 is tenable.

I'll not long on any counters as many of this has hit the upper bollinger band. Possible SHORT is DBS. Indicators showing that it is entering into overbought region. Recommended entry at $9.80 - $10.00

Disclaimer: My assessment of STI is for fun reading only. It is not an inducement to buy or sell nor an investment advice. By reading this blog, you have agreed that I shall not be responsible for any profits or losses based on the information provided.

Trading Ideas for Week of 5 Jan 09

STI: STI has been uptrending with higher-high and higher low since 24 Nov 08. Indicators show signs of bullishness, possibly with a mini rally towards 1907 in the next 1 - 2 weeks. However, there will be speed bumps ahead. Possible near term corrections could be encountered at 1860 (which is the upper bollinger band), but unlikely to post a strong resistance if the current trend in the world market persists. Quarterly earnings results are around the corner. Figures are likely to disappoint. Will this put a damper to the bullishness?


My Stock Pick:
LONG on SIA Engineering & Sino-Environment


SIA Eng broke 20MA resistance at $2.05 on Fri. Volume may not be fantastic, however, key indicators point towards an uptrend.
Entry Price: $2.05-2.08 Profit Target: $2.18; Cut Loss: $2.00








Sino-Env broke 20MA at $0.62 on Fri with reasonably high volume. Kdy indicators show uptrend is intact.
Entry Price: $0.63 Profit Target: $0.735; Cut Loss: $0.57







WATCHLIST:
LONGS:
Jardine C&C - Stochatic in oversold region & bullish crossover, ADX turning +ve, Green MacD histogram
Long Trigger: Price breaks 20MA & 50MA resistance at $9.93

SHORTS:
UOL - Stochastic overbought, hit upper bollinger band.
Short Trigger: Stochastic/MacD bearish crossover; Candlestick bearish reversal

STARHUB - Stochastic advancing to overbought region, ADX in -ve territory, Red MacD histogram
Short Trigger: Stochastic/MacD bearish crossover

Disclaimer: My assessment of STI is for fun reading only. It is not an inducement to buy or sell nor an investment advice. By reading this blog, you have agreed that I shall not be responsible for any profits or losses based on the information provided.