Finally market start to move, to the downside
As of now, Dow is -264 at 2:20am. After consolidating for the last 5 days, whereby a lot of people got itchy finger and started to long unnecessary, the reality hits. Will it continue further down? Only the price can tell us. Dow came down badly because of Italian Job, where the lending rate suddenly spike higher, which signifying that it may be next, after Greece. Even if Europe can temporary band-aid this issue, do anyone still remember the US budget saga? US of A is still not out of the woods yet.
http://blogs.marketwatch.com/election/2011/11/08/15-chance-of-supercommittee-failure-analyst-says/
15% chance of supercommittee failure, analyst says
Anyway like it or not, trade with what the chart tells you. If you have been noticing, I have not been posting much stocks for a simple fact: I don’t see any counter worth posting. I don’t have a quota to meet or the pressure to find every single post. Don’t see anything I like, I don’t post. Easy, right?
Now my dilemma. A lot of counters to post tonight but no time to post it… ke ke ke…
So, if you have been watching my YouTube, webinar, you know that a lot of counters can draw the 2 lines easily, the 2 support and resistance that I have been emphasing. Break resistance long, break support short. Now is more like break support short.
Therefore will post 1 more before I go to zzzzz because have to wake up early to send wife to airport, and then I am a free man for the next 1 week.
DBS
DBS has been resilient and kept on moving higher over the last few days but the volume has been diminishing. And now, it hits a classical resistance of 12.90. Therefore, watch your ESP and decide your risk. Banks all over the world are affected by this European crisis and recently MF Global went under because of the same reason. Is it possible that Singapore banks have no exposure to it at all?
Biosensors – Bullish pennant may fail
As previously mentioned in chat box, the unusually high volume on Oct 28 is something to be worried, as there is upper shadow in that candle. This means that there are some selling pressure. If Biosensors closed below 1.375 which is also a previous resistance turned support, there is a high chance this bullish pennant will be negated (fail).
Dow futures -211 now…
It is an Italian Job.
Mewah – running higher on rumours
Mewah got pushed higher due to rumours. And this counter was also highlighted in this week YouTube. If you have not watch it, time to watch it now as there are several counters also highlighted. Remember to do your own risk and reward.
If you would like to trade penny counters, do read the Diamond Cutter strategy in the Strategies section above.
Do note that there will be no webinar this Thursday as I have to send my wife to the Airport for her holiday/courses. Always keep feeding the mind, and never stop learning.
Major movement should be coming soon
Looking at the price action of EUR/USD over the last few days, it looks like dollar is in “constipation”, whereby it got stucked in-between the black candle that was formed on Nov 1. Since then till now (11:30pm) The candle has had small body and inside the black candle. Those that know TA, this is known as inside bar, and also a intraday bollinger squeeze. Which means the currency is quiet awaiting some trigger. What this trigger would be is anybody guess, but I have drawn the line across the black candle. If it breaks higher, that means market will rally, and if it breaks lower, then market will sell down. Therefore, now is just a waiting game. Since the range of the candles is also very small, to long or short EUR/USD would have to be very short term, hit and run.
Singtel – Bearish divergence seen
For those having long position in Singtel, do set a trailing stop. Bearish divergence seen in MACD and Stochastic. Singtel has been holding STI from dropping much. Time for a rest?
A good trader…
Every single day, there are more than 1000 counters in Singapore, more than 10,000 counters in USA. So which one do you take? A lot of people wants to be a hero like Rambo whereby every single day always pulling their trigger…
But a good trader never hunts for every single counter. He waits patiently for the right counter to appear and then wait again for the right price to be hit, and then wait patiently to pull the trigger.
Remember, we are fighting a war, but this war is won not by killing as many enemies as possible. This war is won by patience, pulling the right counter at the right time and at the right price. Traders aim for the head, every bullets counts (your capital), and not waste every shot firing all the time and expose yourself to the enemies to be shot down in cold blood.
If there is no trade available, there is no need to force a trade. A soldier when there is no war is always at practice range. When there is no trade available, what do you do? Are you brushing up your skills while waiting for the trade? Or you just kept on firing hoping one of those shot will hit the target? In the meantime, have you count how many bullets left? Worse is when a perfect target appears right in front, but alas, there are just no bullets left.
Nov 7, 2011 Weekly Singapore Stocks with Jonathan Tan
Europe bailout. Greece no more referendum. FOMC no action and Non-Farm Payroll lower than expectations. Seems like market are swinging wildly. A lot of people are at their wits end trying to find a direction in Singapore stocks. How to trade then? Find out what it is in this week video edition.
Remember to let your friends know about this video, Facebook and weekly webinar (Thurs 10am). Thanks.
This was what I posted early this year. Perhaps a similar situation may happen in January 2012
Posted this early this year to highlight a group of people to watch out for January turning point and now we all know it did happened. History always repeat itself, it may be different situation, but it will always repeat itself. Therefore, when you understand what had happened in the past, you will take note if similar situation repeat itself in the future.
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If you take a look at 2010 January, you will notice that the high was made on Monday second full week of Jan 2010and then the entire week got weaker before starting to s-ell down on third week. If you look closely, there are several bearish candlestick reversal before it really starts to fall. Therefore, the good news is that there will be time for you to get out on your long position. Market will not fall in 1 day, market will always give you time. Question is, are you prepared to look at what the charts is telling you?
Note: As of now, Friday candle is a bearish engulfing candlestick.
My trading plan:
I really hope tonight report number will be very good and Dow will do a big rally. Then this weekend, everyone will be so bullish that all will start to think the opportunity that they missed in the first week of Jan (and all their friends are making money). They will be thinking, this time, if I missed it, I will miss the 2011 rally and with Chinese New Year Rally, this rally could be starting now. Then all will jump in on Monday and from Tuesday onwards, I will be looking out for bearish reversal candlestick especially on high volume. Time to go for the kill is on the confirmation day, 1 day later. Therefore, there will be time to exit, and time to enter. I do not have to take every trade especially if I am uncomfortable, right? We just about to complete only 5 days out of 200 trading days of the year. You mean if I miss this, I will miss out on all opportunity for this year? Next year? Forever?
Do note that i am always wrong. Market is always right. Is it possible that the scenario above will not happen? I will let the charts tell me what to do. If it does not happen, I will wait for the next setup to happen. Trading is like a lion: It will wait patiently hiding in the bush waiting for the injured animal to show up before pouncing it. Have a sniper mentality. A sniper will wait for days waiting for the enemy to show up before going for the kill.
Above are what that had been posted. You will notice market will always give prior warning before anything happens. Your job is to recognize it. Below is what had happened early this year. Notice that market gave numerous warnings before it comes down, and also it “forecast” that japan will have earthquake…
Nov 3, 2011 Mid-week Singapore Stocks with Jonathan Tan
Now that Ben Bernanke did not do anything, market rallied but Greece caused lightning and Singapore stock opens in red. What a volatile market. Most people asked, “how to trade?” Find out what it is in this week video edition.
Remember to let your friends know about this video, Facebook and weekly webinar (Thurs 10am). Thanks.
