Dow Jones has been falling 9 out of 10 sessions. However today, now Dow is in the green at 40 points. This has been a weak week so far. Europe problems still in the radar every single day. Patience is needed. I am still looking at the market for any sign of bullishness but cant find any.
Singapore today isn't good either with STI dropping 45 points. What a drop! Few counters are spared.
Like what I mention last week, I am looking for confidence to come back in the US market. Lots of counters look attractive now. How do you know if confidence is back?
2 signs you need to see:
1) Dow Jones closes 100 points up - A triple digit increase in Dow signifies some confidence coming back into market. It hasn't happen so far in May. No single day that is 100 points in the green now.
2) Dow Jones has 3 consecutive up days - 3 consecutive up days always signify a change in trend. But sometimes if there are 2 very bullish days with a long body candle, it signifies a change in trend too
Btw, Dow has been falling for 2 weeks now. We have entered into the 2nd half of the month. See whether there is a change in trend. Somehow, I still feel there might be a stop to this drop. But wait till that happens, it is good to protect our capital.
2moro there is a weekly Jobless claims report coming out. This month's Jobless claims reports are important as it will show whether next month's employment reports continue to be weak. So pay attention to it.
On Friday, Facebook will IPO, so far it's IPO has not impact the market yet, though a lot of people are queuing to get their hands on it. Friday may be the spark the market needs to light up the fire again.
Let us see!
Rgds
Daniel
