Friday, 2 November 2012

What a wonderful day for the DOW!

Dear Friends,

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.
http://www.danielloh.com/2012/11/has-dow-nasdaq-seen-lowest-point-this.html

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.


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...