Warning! Take profit soon!

The resisitance is coming! Better take profit and stay sidelined. I feel that a lot of people are 'gambling' now. As they say, the faster they rise, the harder they fall.

Time to start looking into trading!

The lines show clear signs of support and resistance!

Shorting possibilities in Dow Jones

Its been a while, and it looks like a shorting opportunity for the Dow Jones might be coming soon.



As for the Singapore side. I think we might be seeing a mini rally due to the budget announce. I am not sure how long it will last. It could be the much needed 'special news' to push the Singapore stock exchange. But I will still think the market will still go down after that. Hence the mini rally might be a good time to get into short positions.

This is because, the true effect of the economic crisis in Singapore has not been felt in the Singapore economy yet. When we start seeing The Straits Times reporting jobless people are on the rise and businesses are closing down. Means it almost time that economy recovers. And it might be time to go long again.

Some info

From the last meet up I organized. Though I have always known that the Singapore stock market is being manipulated to a certain extent. I did not know that it is actually quite serious. This is because our market is really too small. Any one individual with say 20 million will be able to move a stock on his own, and 'bluff' everyone into believing that the stock price is going up.

Also, with their kind of resources, they are also able to make fake TA signals. Hence we must be always wary of such things. The safer bet will be to trade the US stock market, where the market is too big too be manipulated.

TA just can't work now..

Haven been updating much here as lots of news are making TA unreliable. For example the bail out issue on the car companies in US. When they announce that they might be a bail out, market rallied, then one moment later they say the bail out is canceled and the market fell. Next moment there is another plan to save these companies by using funds that are meant for the banks.

In these case, TA will not work. So stay out of the market, if you are depending on TA to make a quick buck..

However if were to look purely at TA, it looks a little overbought..though if more 'good news' come, the market will keep on trending up.

Market out look for Dec 1- 5

• Dow Jones

Technical indicators on the underlying price shows that the following week might be bullish. But due to the weak volume, this trend is not definite. Hence I feel that, if no new's is going to be announced, market will trend upwards.

• STI

Technicals are showing possibilities of an upward trend, and it will help greatly if the US can remain neutral/bullish.
Once it passes, 1750, maintain buy, till it reaches 1818, before deciding again. Cut loss at 1710

Market outlook

• Dow Jones

• Hang Seng
• STI

I would recommend shorting the STI if any rebound happens. Keeping time frame of at least 1 week before cutting any lost or when the Red parabolic SAR cuts the price curve.


* This blog is serve as a means for me practise my TA, and for your own reference only. It is not an investment/trading advice. It is always best to consult your personal financial adviser before parting with your money.