From last Mon to Friday, the market showed its resilience. Currently there seems to be some Big players trying to short this market. Especially so for Dow, which open lower in the first hour of trading in 3 out of 5 trading sessions. (Pls see our chart on Dow for this week). Last Friday is a chance for the shorts after uncertainty over Greece’s ability to secure a second bailout and to avoid a messy default.
Do note that Greece is set to vote on the measures over the weekend according to PM Papademos. And Greece will need to decide if it will stay in the Eurozone by Feb 15th. The Big boys finally got their chance to push it down 100 points at the open last Friday. However, it came came to close in 2 digits. It will be interesting to see how Dow opens on Monday.
Although the resistance is strong, do we have a chance for the breakout?
Yes, but probably with the help of a STRONG economical report and Greece decision this week. We definitely need a hugh lift to breakthrough. On Tuesday, Retails Sales will be reported. A good figure from it is a must. However, expectations is high at 1%, much higher than last month's results of 0.2%. Do take note that for January Retail Sales, christmas may have already been over. This time I am really keeping my fingers crossed.
So what would be our strategy for this week? My suggestions are:
1) You might not want to enter any positions this week as there will be uncertainties again from Greece. Profit take if you may. Wait for more positive news. Anyway, I also suggest we wait for STI to clear its resistance of 3000.
2) Pay attention to Retail sales on Tuesday which I hope will beat expectations.
3) Technically, if STI close below 2900 and Dow close below 12700, for 3 consecutive days, this run may be over temporarily. It might signal the start of a decline. Try to liquidate your positions then.
4) If STI burst through 3000 and Dow burst through 12938 for 3 consecutive days without dropping back, this run might continue.
So this is definitely one crucial week for STI and the DOW. It may be D-Day!
Stay tune for further updates!
Btw we have a FREE Seminar coming up:
<<Secrets of the US stock market & How it affects Singapore market>>
on 18th Feb (Sat) English Session OR 21st Feb (Tue) Chinese Session.Do recommend your friends to this workshop!
You shall learn
1) US market important economical reports and implications
2) Outlook of Singapore and US market
3) Top 10 stocks You must watch out for this Quarter
4) A strategy to know the direction of the market this month instantly
Date: 18 Feb 2012, Saturday 2pm - 5pm (English) OR
Date: 21 Feb 2012, Tuesday 7.30pm - 10pm (Chinese)
Venue: 141 cecil street, Tung Ann Association Building
Tanjong Pagar MRT exit G, walk straight 80m, opp traffic light
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or SMS <Name><Email><HP><Date><Number of seats> to 93676623