Trading System

Market Correction Or Trend Reversal?

2009-11-01T10:44:00.002+08:00

Dow Jones Industrial Average closed at 9712 on Friday down 249 points. The moved erased all the gains made on Thursday. The index closed below the uptrend channel and is at dangerous territory. The RSI is now at 45 level. Note that RSI has not fall below 40 level since Jul 09. MACD is showing bearish signal as well with the indicator below its signal line. -DI is set to cross the +DI, this may

SC Global

2009-10-11T10:18:00.003+08:00

SC Global has come a long way since hitting a low of $0.295 on Mar 09. Prices tested $1.42 on 5 Oct 09 before rebounding to close at $1.63 on Friday 9 Oct 09. SC Global is in the luxurious property sector. Sale of Seven Palms Sentosa Cove got underway and it managed to sell 6 out of 10 released units in a recent private preview. Transacted price range from $3,100-$3,400 psf with each unit

Singapore Market

2009-09-26T11:19:00.002+08:00

STI index has stayed within a 200 points range since it broke the 2424 resistance level in mid July 09. The bulls pushed the index to 2700 on 4 Aug 09 but could not overcome the sellers that came in to take profit.The market correction that analysts talked about has materialized. Investors have been buying on dips and that strategy seems to be working since March 09.The technical charts are

Shanghai Market

2009-09-06T09:53:00.004+08:00

Shanghai market tested the uptrend line this week. The good news is the uptrend line is still intact with the support level holding on to attacks from the bears.However there are a few warning signs appearing on its weekly chart.Firstly, the MACD indicator has cut down from its signal line. The indicator has stayed above its signal line since end of Nov 08.Secondly, the +DI is about to go below

Dow Potential RSI Divergence

2009-08-29T14:09:00.003+08:00

Dow closed at 9544 on Friday, down 36 points for the session. For the week, the index rose 39 points.The technical picture is mixed at this point.The ADX and DIs indicators are indicating a continuing up trend.RSI is showing a divergence pattern with the Dow making a high this week but with no confirmation from the RSI indictor. This is bearish and suggests a possible sell down.The MACD indicator

STI Update

2009-08-09T14:44:00.001+08:00

Singapore market closed slightly below 2600 level on Friday. This was the first time the market made a series of “Black Candles” since it broke out of the 2424 level on 20 July 09.Fibonacci retracement level is at 2527 (38.2%) and 2417 (61.8%) respectively.RSI has dropped from overbought levels and is now at 57 level. There is no RSI divergence at this point and this suggests that the up trend

Dow Updates

2009-07-25T09:56:00.002+08:00

Stock market has rallied across the board. The Dow Industrial Average is now above 9000 level. The index is currently at Jan 2009 level. Technically, the charts are looking better. Just a few weeks ago, there was a possibility of a sell-off based on the head and shoulder pattern. That did not materialize. And when the pattern failed, the market rallied. The reverse seems to be happening. An

Dow Industrial Average Potential Head & Shoulder Pattern

2009-07-05T13:21:00.005+08:00

Stock market around the world is in corrective phase except for the Shanghai market which went above the 3000 resistance level.If you look at the technical charts from US, Hong Kong, Singapore etc, the charts are all showing a potential head and shoulder pattern. For US Dow Industrial Average, the index needs to stay above 8200. If it

COSCO

2009-06-14T13:03:00.002+08:00

Cosco is approaching resistance level of $1.47 again. The stock price broke through $1.39 on 8 Jun 09. However bargain hunters emerged on the 9 Jun 09 and the rebound took it back above $1.39. The stock chart has been making higher highs and higher lows since it bottomed out in early March.Cosco needs to take out the price level of $1.47. If it is able to take out this level on high volume, the

STI Update

2009-06-07T17:29:00.003+08:00

Dow Industrial Average reached a high of 8839 in the opening minutes before succumbing to selling pressure. It lost all its gain and went into negative territory before buyers came in to bring up the index. Market closed at 8768, up 12 points for the whole session.The non-farm payroll showed a decline of 345000, a better than expected number of job losses. However un-employment rates reached a

US Market

2009-05-31T12:27:00.002+08:00

Market continued to rally higher in May. The upward momentum seems to be slowing down as the market hit critical resistance level.The S&P500 index is approaching its 200 day moving average. The market has been going sideways for the past few trading sessions with the index moving in a band of 880 and 930 levels.The index has rebounded from its 20 day moving average and seems to be moving towards

STI

2009-05-10T14:37:00.002+08:00

STI made a spectacular recovery from its March 09 lows. The index climbed from a low of 1455 to reach a high of 2283 last Friday, a gain of 56%.Technical indicators are showing a positive picture. The 50 day moving average has made a crossover with the 100 day moving average. MACD line is above its signal line. +DI is above the –DI with an ADX value that is above 30. Continuation of the bullish

STI Update

2009-04-26T08:11:00.001+08:00

We have a pullback of the index this week. STI dropped from 1896 to close at 1852 for the week. The index went below the 61.8% retracement level on Tuesday but was able to snap back from the losses.As long as the index is able to hold above 1754 level, we still have a pattern of higher highs and higher lows. This bode well for the bulls.The 50 day moving average is upward sloping and the index is

STI Update

2009-03-30T07:54:00.001+08:00

STI index retraced the complete downswing from 1780 to 1455. The index fell 13 points on Friday.The index has stayed above its 50 day moving average for 5 trading days now. Any fall is healthy if the index can stay above its 50 day moving average.A similar situation occurred in Jan 2009 where the index went above its 50 day moving average only to make a new low of 1455 on 10 Mar 09.A bullish

US Market Update

2009-03-21T10:21:00.003+08:00

Dow Jones rebounded from its low of 6440 set on 9 Mar 09 to end at 7278 yesterday. That is about 13% rebound in the span of 2 weeks.The rebound has taken the index right up to its 50 day moving average. Last night the market was not able to take out the 50 day moving average. That is not a good sign. However, it may turn out to be just a pause before the index attacks its 50 day moving average

Dow Update

2009-02-28T14:05:00.002+08:00

Dow industrial average has fallen to 1997 levels. It has broken its Nov 07 low of 7392. The picture looks bad at the moment. ADX is at 49 levels and –DI is above +DI. This suggests a continuation of the down trend. MACD indicator has also crossed below its signal line, another bearish indication. The only bright spot is that the RSI indicator has not made a new low yet and divergence of RSI can

Dow Jones

2009-02-15T17:20:00.001+08:00

The Dow Jones Industrial Average looks to be forming a bottom. The index is near its Nov 07 low of 7392. The trend is still bearish at this point in time. However there are 2 positive signs in the technical charts. Firstly, the weekly MACD indicator is above its signal line and secondly, the weekly RSI seems to be forming a divergence signal. The index needs to break the downtrend channel line in

Capitaland

2009-02-12T08:04:00.002+08:00

It is interesting to see Capitaland shooting up even though it announced a rights issue.The technical indicators sure look good at the moment. The MACD made a bullish crossover on 10 Feb 09 on heavy volume. Stochastic indicator also made a bullish crossover. RSI is increasing and is not in overbought/oversold territory.The stock is approaching resistance at $2.90. This level also coincides with

SPC

2009-02-10T08:17:00.001+08:00

SPC had a good run recently. It rallied from a low of $2.18 on 21 Jan 09 to a high of $2.86 on 9 Feb 09. Goldman Sachs downgraded the stock from “neutral” to “sell” and reduced its target price from $1.80 to $1.60.The stochastic indicator is indicating short term weakness as the %D line has just crossed under the %K line making a bearish crossover.The force index has also decreased from a high

10 Stocks To Ride A Recovery

2009-02-01T13:08:00.002+08:00

The Lunar New Year got off to a good start this week. The index managed to gain 61 points for the week to close at 1746 on Friday.However US market experienced a triple digit loss of 148 points on Friday to end at 8000 level. This will put some pressure on the Singapore market on Monday.The latest issue of Edge investment weekly has recommended 10 stocks to ride the recovery. The list is as

SPH

2009-01-19T07:59:00.001+08:00

Analysts are looking at the potential dividend payout to support the shares. Citi Investment Research expects a 9.9% dividend yield for FY2009, Kim Eng expects a prospective 7.5% dividend yield in FY 2009. DBS and OCBC are forecasting dividend yields of 8% and 7.1% respectively. For more information please refer to The Edge Investment Weekly.The technical picture for SPH is not looking good. It

Capitaland

2009-01-11T07:53:00.001+08:00

Capitaland had a roller coaster ride this week with the stock going to as high as $3.68 before hitting a low of $2.89 on Friday. The stock managed to close above its low on Friday to end at $2.91.The stock is now sitting on the 61.8% Fibonacci Retracement level as well as the support level. With the Dow closing near its low of the day on Friday, this support level will be difficult to hold come

STI Update

2009-01-05T07:35:00.002+08:00

DOW opened 2009 with a bang, going up 258 points to close above 9000 points for the first time since 5 Nov 08.Singapore market also got off to a good start on Friday with the index closing above 1800 points.The technical indicators are bullish at this point but do not seem to point to a sustainable rally.The MACD indicator is still above its signal line which is a bullish sign. But one concern is

City Development

2008-12-01T07:59:00.002+08:00

City development is testing the upper boundary of its down trend channel.MACD just made a bullish crossover and it indicating further strength.ADX is decreasing which is a good sign. This means that the down trend that we have seen in the past few months is decreasing in strength. However the +DI is till below –DI suggesting that the current rally is most likely to be a bear market rally. The +DI

Keppel Corp

2008-11-23T14:35:00.001+08:00

The stock market volatility continued to haunt market traders. Dow surged from 7509 to end at 8046 in the last hour of trading. News that newly elected US president is getting Timothy Geithner as treasury secretary gave traders a reason to buy up battered stocks.The show of strength should spur Singapore’s market come Monday. Keppel Corp, once a market darling, has come a long way down since