Friday, 7 February 2014

Tomorrow non-farm payroll is crucial, but we think turnaround is near!

Dear Friends,

Like what we mentioned before the chinese new year, we are looking at a bottom for US market when it dips below the 200day MA. Indeed these 2 days it did dip below the 200day SMA line.

We are looking at a potential halt in this downtrend for the US market. Although it may take time to know whether a strong rebound is in the cards, we do think well about this support.



There are two scenarios that might occur tomorrow:

1) non farm is disastrous which means index might still have a big fall. But once this happens, allow dust to settle. We believe it will just drop for another 1-2 weeks and that is it!

2) the market react positively to a not-that-bad or good non farm payroll. When this happens, we believe that it is a good chance to go into the stock market again.

Either way, it is a matter of time we see the bottom. I am keeping my weapons ready!

Rgds
Daniel
www.danielloh.com

STI is the Only Flower stuck in a pile of Cow Dung! - The only major index in Asia that is in the Green

Dear Friends, A few days ago, I issued a post on where I think is the accumulation area of STI - 3300-3350. Yesterday it dropped into thi...