A Look At the Big Picture - DJIA: The Dow has made an impressive recovery over the last few trading days. But we are not out of the woods yet. Could this be a dead cat bounce? Indicators shows signs of recovery. However, we still cannot rule out the possibility of a dead cat bounce. To be out of the woods, we need to see the +DI rising above the -DI, with Dow maintaining its 20MA support. Fundamentally, we have not seen any concrete actions taking place over the last few days except for "rhetorics" of the big banks turning in positive numbers in the last 2 months. This has boosted investors' confidence temporarily...but we need to see the financial statements to be convinced! Otherwise, Dow will be plummeted again.
STI: STI had a great showing. Indicators are also showing signs of recovery. However, we are still not out of the woods yet. We need to see the STI holding the 20MA support in order to be more positive of the up trend. If this fails, we could be testing 1500 line agian. Let's hope that the US banking stocks continue to rise, with this, our local banking stock will be able to follow suit. We need these banking stocks to rise in order to see the STI moving up.
My Stock Pick from Indicators Watch:
Nil...
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.
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