Look "Down" on STI

STI hit high of 2720 in the morning soon came down to 2700 and lost it. The bulls give up and bears pull STI to 2672 (-35points) at 10.15am.

Below is my shorting candidates with resistance level(stops):

Genting: 1.605
Citydev: 9.75
Olam: 2.35
OCBC: 8.38

Window Dressing? Don't fall to Bull Trap

Today is the last trading day of the week, last trading day of the month and last trading day of the quarter. How will the market behave? Is there a window dressing? Do expect some possible "weird" move in the opening session.

Do remember: the gerneral market is DOWn, a pretty DOWN trend, all the news and events are just "props" and distraction.

Will update you again.

STI "go home" Now

STI opened lower and rebounding after that for the whole morning session, playing "go home" (2715-2730 resistance as mentioned in two post back). Now it at 2705( previous gap resistance 2705-2715).

As long as it stayed above 2700 by tomorrow(Friday) close, we will have a bullish reversal candle at support level.( Please refer to my post on Tue). It's all about numbers and levels. I didn't enter to short as planed, as I see the stocks did gap down lower on opening, and there's a chance for it to fill the gap.

Will update you again.

Short Candidates

Sembmar: below its major resistance 3.6-3.65
Kepcorp: below its major resistance 8.4-8.5
Olam: below its 20ma and 50ma 2.43
Genting sp: below its major resistance 1.645

STI Set to Open Lower

US market from initial decline turned to a sell-off last night, with 180 points to close at 11,010. STI is set to open lower today.

STI yesterday dropped back to its support 2700, where I consider 2700-2730 as "home", and the wind is blowing south now, this week it opened at 2701, went down to as low as 2627(Mon), wandered back upwards to 2700 then 2730 resistance(Tue), and unable to continue go up yesterday, closed down to 2701(Wed), the bench mark is 2700-2730. I will go for shorts if it go south from"home".

Global market will be looking at Geman's decision today if they approve to boost the EFSF. ( click here for full story)

STI mode: Downtrend, below resistance level.

STI Bullish Reversal

It's 10mins away to market close. STI shoot up 75 pts at 2730 now. Take a look at STI weekly chart, it shows a hammer candlestick(real time), as today is Tuesday only, the weekly candle not fully completed yet, but as long STI close above 2700 by Friday(major support, also Monday open at 2701 this week), I expect market will continue rebound in coming week.

We can take this opportunity to long at "bottom", the blue chips( mainly STI 30 component stocks) will lead the rebounce no doubt. will update you the long candidates in new post.

STI Testing of Resistance

Following the 270 points or 2.53% bounce for Dow last night, I expect STI will get a bounce too. Let's take a look on STI modes:

1. STI trend is DOWN, (lower high &lower low, 20ma pointing down, MACD line below zero...)
2. STI bullish divergence with MACD line( hint for a rebounce)
3. Use counter-trend strategy for long, or wait for shorting opportunities at Resistance level.
4. Any long position should be short term, do take profit as the TREND is still DOWN.
5. STI immediate resistance level: 2705-2715( gap resistance)

STI at 2700 Support

Very good morning everyone. I'm back to the "battlefield".

Sorry for my absence for the past two weeks. I just can't log into google account(which my website based) in China. It's quite disappointing in the Internet era and no one can block the free flow of information.

STI didn't have a trending move over the past two weeks, it went back to its low in Aug, tested 2700 support last Friday. The "big" picture: STI had a lower low last week and gapped down on open last Friday, but it managed to close the gap, all the way back to 2700 support area. It implies two options:

1. A false break of the 2700 support
2. A break of the support and testing resistance( support turn resistance)

I will check the S&P 500 future for direction today.

Weekly Wrap Up

Hi everyone.

I'm leaving town for my holiday now. I will try to update here whenever possible but please expect my post will be few and long time in between.

Anyway, I have few points for the market:

+ Do expect market will continue in a choppy manner for coming weeks,  means it will swing up and down in a big range( 50-100 points)

+ STI is still trading in its"bottom range as seen in Feb and May 2010. Current support and resistance range from 2750-2850, refer to STI weekly chart below.

+ Close  price out of the range(below or above) will lead to further downside/upside.

Trade with care. Bye for now.

Gap was Filled

A quick note for today below.

STI up 57 points to close at 2832.13, a tick above its gap upper line 2831(refer to my previous post). The gap was closed now. Two ways it could go tomorrow depends on how's US market tonight.

1. it may turn down from here(2832)
2. Continue rebound to 2890( next major resistance, 38.2% fibonacci)

will update you again.

Defensive Repositioning

Here's my thoughts for current market:

+ US market Dow was once down more than 300 points last night and recovered with 100 points down in the closing(DJi closed at 11139). Leaving a long "leg" at bottom, it shows some "support" forces to hold the market from drastic selling off. However, the market is still dominated by bear, I will turn to bullish only IF it close above 11500 resistance.

+ STI did gap up on open today, into the previous gap between 2800-2831 (resistance) range.  All the charts have multiple gaps in them over the past few days, don't know which one will get filled. Just like you walking through a minefield. 2890 is the major resistance for bulls to move up further.

+ I have no large position on either direction, as it's consolidating at "bottom" now, I see some short term long plays, I will keep it defensive and nimble.

+ There are lots of headline risk this week, (will Mr. Obama save the market this time? no one could) market would be jittery out of them, which makes me uncomfortable.

Market Back to "Bottom" Again

STI has dropped back to near its "bottom" today but not signs of rebounce for in most session of the day. It getting better after Euro market open positive at 3pm.

STI up 13 points as I'm writing now. For a quick rebounce, I'm looking at:

Kepcorp
Sembmar
Midas
Genting
Kepland
Indoagri

Market is Going to Open Lower

Good morning every one. Here is my quick note below, will come out a more in-dephth analysis later.

Market is going to open lower and come down, bulls please be careful, follow your stop loss and money management rules.

Will update you again soon.

STI Resisted at 2890

STI resisted at 38.2% fibonacci level 2890 yesterday, the special Friday indicator I'm looking at( you will understand for those of you who attended monthly gathering last week) for today:

61.8%: 2850
50%: 2831
38.2%: 2812

Will update you again.

STI's Strong Rebounce

It was a big relief for bulls yesterday, with STI up 93 point in a single day, definitely a decent "window dressing" to end the month of Aug. Take a look at the big picture, the bloody drop for the month of Aug left a long tail for more than 200 points at the bottom.

Take note of the fibo levels as shown in below picture( from Aug high to Aug Low), and the three gaps: the immediate one:  2973-2943, which coincide with 50% fibo level 2954, and the 61.8% fibo level 3020 is also a major resistance level to watch out if STI were continue rebound up.

Currently, we are at 38.2% fibo 2890 resistance. See if it can break above from here. Overall, the trend goes to "no-man's land" now, STI had its "first leg" up, but the uptrend has yet confirmed. Make trading decision can be very tricky now. "Subjective" call need to made, do watch out the resistance/support level to park your trade.