As mentioned yesterday, the employment report on Wednesday and Friday is of upmost importance. Whether the market would fall hard depends on employment reports this week. You may find it amazing that on Tuesday, we focus so much on the negative issues like China slowdown, Potential Isreal Iran missile war, Greek problems, bringing Asia, Europe and US down. US decrease by 204 points, the largest drop this year.
Yet 1 day later on Wednesday, we seem to forget everything. We choose to ignore all these problems and Dow closes 78 points up.
WHY?
Stocks that were sold off yesterday are rebounding as Asia joins a
global bounce. Suddenly Greek debt deal problem seems over again. Optimism arise.
The reason is because of yesterday's good ADP employment figure. If it isn't good, I bet we will have a terrible day again.
I have a philosophy in trading: Technical only dictates the support and resistance, while Fundamental news always dictate the direction. It has guided me well and I think everyone should learn about Economical Fundamental Reports. Economical Reports generate confidence in the market. And it is this confidence in market that let us choose to listen to positive or negative news! Good and Bad news are always around everyday. It is how the market choose to focus on which.
In property investment, it is always about "Location, location, location." In trading, Asian Leading Investment Guru, Mr Hu Li Yang mentions it is always about "Timing, timing and timing!"
That is why as traders we need to know when important economical reports come out. We need to know whether it beat expectations, what is the impact on the market, how the market reacts to these reports. Only then, we can time the market!
For today and Friday, it is still about Jobs. Today we have the jobless claims and 2moro we have the BIG mother of all reports, Non farm payroll and Unemployment rate.
Do not think that the fall is over. Like I said, wait after Friday. If employment report is good, this month's market might be sliding sideways. If it isn't good, expect the backlash again. I won't expect Dow Jones to move up 800 points this month as enterprise reports are generally missing their targets, as shown by ISM.
Technically, both Dow has reach its support at 12750 while STI has reached its support at 2910. These are the last Box Top support figure they penetrated recently. If Friday's employment report is good, Dow might try to test 13000 again and STI testing 3000 again.
Let us adopt a WAIT and SEE attitude till next week!
Free Seminar:
<<Secrets of the US stock market & How it affects Singapore market>>
You shall learn
1) US market important economical reports and implications
2) Outlook of Singapore and US market
3) Top 5 DEFENSIVE & Resistant stocks You must watch out for this month and which Sector is in play now?
4) A strategy to know the direction of the market this month instantly
Date: 13 Mar 2012, Tue 7.30pm - 10pm (English) OR
Date: 14 Mar 2012, Wed 7.30pm - 10pm (Chinese)
Venue: 141 cecil street, Tung Ann Association Building
#07-02 S(069541),
Tanjong Pagar MRT exit G, walk straight 80m, opp traffic light
Speaker: Daniel Loh (Raffles Business International Director, Mr Hu Li Yang partner, US Stock & Options Trainer)
To register pls click here
or SMS <Name><Email><HP><Date><Number of seats> to 93676623
on 13 Mar (Tue) English Session OR 14 Mar (Wed) 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 5 DEFENSIVE & Resistant stocks You must watch out for this month and which Sector is in play now?
4) A strategy to know the direction of the market this month instantly
Date: 13 Mar 2012, Tue 7.30pm - 10pm (English) OR
Date: 14 Mar 2012, Wed 7.30pm - 10pm (Chinese)
Venue: 141 cecil street, Tung Ann Association Building
#07-02 S(069541),
Tanjong Pagar MRT exit G, walk straight 80m, opp traffic light
Speaker: Daniel Loh (Raffles Business International Director, Mr Hu Li Yang partner, US Stock & Options Trainer)
To register pls click here
or SMS <Name><Email><HP><Date><Number of seats> to 93676623
