Update on 25/11/07

As many people are thinking we are going to a bearish trend, TA shows a opposite direction. Most of the asia indices shows a inverted hammer, which is a good sign and there will be a light to come. inverted hammer means a change of bearish trend to a bullish trend.

Sorry for not updating the blog for the past 1 mth as I met with an accident and have a lot of things to clear.

Dow on 19/10/07

Market looks like a knee jerk reaction. The support at 50MA has broke. the next support will be at 13550. Looking at the indicators, chances of going lower is very low. Moreover next week will be the FOMC meeting which everyone is waiting for Mr. Ben to do a rate cut. Chances of cutting the rates will be 50 50 for quarter points. So do not put so much hopes on the interests rate cuts. Overall our STI market as I had predicted after looking at the opening of Nikkei, I know STI sure will drop at least 3% or more. We should see how Dow performs tonight at closing. Overall the Support of 13550 range is pretty strong too. A very low chance for it to break.

Update on 19/10/07

Overall as we can see from the chart of HSI, uptrend is still intact. 1st support will be 29000 and followed by 28000 which is the 20MA then by the fibo support. I do think, the chances of dropping below 50MA is quite impossible as now is consider a healthy drop. Shochastic n other indicators are very toppy, it's time for it to drop a little before another rally up. most of this drop are due to profit taking and panic selling.

Also people are waiting for Mr. Ben to talk abt the interests rate cut. Chances of cutting is slim. As many people are hopping for the rates cuts, it may not come true. The most if there's a rate cut, it will be a quarter points. Do remember on the 11 of dec, there's another meeting of FOMC.

Currently I will stay on sidelines and wait for more signal before I take a position.

Like what old timer will say, doing nothing is also a good trade. Doesn't means everyday you need to do trading.

If you do trade, keep your cut loss tight! which I had learnt from my past experiences as a day trader. Now I am no longer a day trader as I need to commit more time to my full time job. Techinically speaking we are overall still in the uptrend than a downtrend. Fundamentally speaking, there are more upside to come in the following mths to come. Do remember that asia is still booming. There's no reason for us to enter a bearish stage at this point of time.

Yes, if US goes to a bearish mode, we will be affected, but most likely we will still move slowly upwards at a slower speed.

As we had seem in the past 1 week, Asia didn't really care how DJ performs, furthermore for singapore, we are like following HSI. HSI is overheated due to the china funds. Furthermore HSI looks very toppish too. That is why I am staying on sidelines. When it starts to turn the corner, we will be ready to load up.

I do not want to stay in fear of how the counters will go when I am concentrating on my work. Remember, this is an INVESTMENT not a gamble!

If for punting, it will be best to go over to the casino, it is also very taxing to play just intraday too.

Basically, stick to well fundamental counters if you are still holding.

Updates on 18/10/2007 for DJ

Dow indice shows a negative divergence which I had drawn on the chart above. We will see more drop coming in these 2 weeks till Mr. Ben come out to talk abt the interests rate. Dow will be support by the 50MA which is at 13780.