Friday, 12 October 2012

Did Dow Jones show significant confidence coming back today?

Dear Friends,

Someone asked me whether today can enter some Singapore stocks already as some singapore stocks are showing signs of running.

My answer is to wait for a confidence change in the Dow. Today Dow shows a good opening following Europe FTSE run up with a 1% rise with a straight trend upwards. Today the finanical sector performs well but I would encourage all to wait for 2moro JP Morgan (JPM) earnings before market open to gauge the health of the sector before judging.

Dow actually climbed up 90 points at one point, but at mid noon declined to 40 points up now.

To me, this is not a sign of confidence coming back. The market is still selling into the rally. This is one sign that the bulls are not in control.

As a trader, I think we need to pick up a habit of knowing the market confidence by looking at how the index move during the day. This will show whether it is the right time to double up or getting out.

Of course, some of us who has itchy hands would like to test the market. If you are one of them, my advise is to go in with minimum position. Do not dump all in if you are a short term trader.

Wait for a clear signal, a signal from US market. The index can speak, you just have to know its language!

Rgds
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)

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