Thursday, 16 August 2012

STI back on track after yesterday down day

Dear Friends,

From the discussion in some chatrooms and facebook and websites, we know some of the retailers are betting the stock market to go down, talking about shorting this stock and that. We suggest against doing it now. 

Why?

It is because market is still at a bullish mode. How do we know?

Look at Wilmar and Genting!

Their earnings are terrible. Wilmar gaps down 30 cents at the open, Genting has a terrible result too! And yet the stocks come up after earnings day. This shows that even "lousy" stocks are being SPECULATED up. The market is nonsensical now, meaning it does not make sense.

And as a trader, we need to develop an intuition. I counted a lot on intuition and feeling throughout my years of trading in the US market. At this moment, I cannot sense any bearishness yet! If you are still waiting in the sidelines to wait to buy the stocks, you might miss one of the greatest bull run these couple of years until OBAMA US presidential election.

Of course short term wise there might be a small consolidation in this long term bullish trend towards election. One way to spot a short term down trend is a triple digit decrease in one day for DOW, or 3 consecutive down days for the DOW.

At this present moment, I feel Singapore market is better than US now. US is in a bit of consolidation the last week. But it is not dropping either.

For your information, keep this dates down, there will be QE3 expectations again before the dates

1) 31st August
Many economists expect Fed Chair Ben Bernanke to send a signal of the central bank’s intentions in his remarks at the Fed’s summer retreat in Jackson Hole on Aug. 31.


2) 12th and 13th September
FOMC meeting: Ben Bernanke will speak again at the 2 days meeting.

Regards
Daniel
www.danielloh.com

958 Interview June 28, 2018: Wallstreet is just using "Trade War" as an Excuse for the Fall! (Translated to English using Google Translate)

          Wallstreet is just using "Trade War" as an Excuse for the Fall! Last night Dow Jones fell 165 points to close at  2...