Dow went up by 137 points after a string of good results coming up. As we have mentioned in our last article, from a technical perspective, Dow and Nasdaq may have reached a strong support on Wednesday. Nasdaq has rebounded beautifully off its 200MA (regarded as a major support and resistance) today. DOW has also reached a support of 13000 points.
Check out our last article for the charts.
From a fundamental perspective, yesterday major reports did not let us down. US market lacks a spark to ignite some confidence. Yesterday ADP employment report and ISM provide the first spark. A second spark today in the major non farm payroll and unemployment rate would be the catalyst needed before presidential election next week.
As we mentioned in our last article, I am leaning towards a good non farm payroll report or unemployment rate. If today indeed the reports do not disappoint, DOW or Nasdaq may have reached its low on Wednesday for this last quarter.
I know that some singapore stocks are really beaten down these past few days, just like US stocks. BUT, it may be time to pay attention already. I know some of you might lack some confidence now. If so, start to accumulate minor lot size to test the market.
Coming to the fiscal cliff worry in December, I am sticking to Mr Hu Li Yang's philosophy in trading. When the whole market thinks it is a problem and are mentally prepared, it often will not be a problem. This is the whole concept of market psychology.