Author: Jay Chia - Your Financial Mentor

Sideways movement confirmed for STI

Sideways movement confirmed for STI Last week, STI experience a week of wild swings but it resulted in closing 11.62pts lower for the week. A mixture of positive and negative set of news was being reported over the week. Reports of introduction of QE3 funds are still being speculated during the week but the market did not react positively this time round. Various gap down actions was seen last week as there were numerous days that STI reacted to the strong negative closing by DJI on the previous nights.  Participant of the market seems to be very uncertain for...

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Daily Market Opinion for 24-Aug-2012

Daily Market Opinion for 24-Aug-2012 STI attempted to rebound yesterday after a strong bearish movement on the previous day. The rebound was sparked by speculations that US and China government will be planning to release QE3 to help their slowing economy. Hence, STI started the day with a slight gap up opening. For the whole morning session, STI continued its rebound and reached as high as 3071 level which broke the gap resistance between 3053 – 3060 levels. However, the buying effort was soon to subside as bearish traders came into the market to make sure the gap resistance...

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Daily Market Opinion for 23-Aug-2012

Daily Market Opinion for 23-Aug-2012 Yesterday, STI opens with a strong gap down after weak closing by DJI on the previous night. The gap down opening caused numerous traders to sell their positions as many feared further selling actions are yet to be seen. 3040 recent low level was tested and even broken during the first half of the day; reaching as low as 3032 level before bargain hunters set in again. Weak opening at HSI had elevated the bearishness during the morning session. Bargain hunters supported the market before the lunch hours which helped STI to climb above...

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Daily Market Opinion for 22-Aug-2012

Daily Market Opinion for 22-Aug-2012 STI started the week flat as the market continues to remain cautious after the long weekend. The day was started with slight gap down with multiple attempts to trade higher. However, whenever it trades higher, it faces profit-takers to prevent the price from going higher. Trading activity was weak during the day as many traders were not willing to commit new positions. Regional markets also showed lacklustre trading sentiment as they ended up flat too. Hence, STI ended the day lacking of clear direction with 3.66pts higher, closing at 3065 level. Last night, DJI...

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STI to be trading in a tight range.

STI to be trading in a tight range. STI closed flat last week as conflicting news were being announced which created indecisiveness in the market while preparing for a long weekend. STI started the week with a bullish start as STI refused to retrace towards 3030 level. This bullishness brought STI to test 3080 level on Tuesday and closed with extremely high volume. Many thought that STI has successfully broken out of this major resistance level. However, weak reports from the media agitated the bearishness in the market again causing the next day to open with a strong gap...

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Daily Market Opinion for 17-Aug-2012

Daily Market Opinion for 17-Aug-2012 Yesterday, STI closed flat despite attempts to test 3080 resistance during the day. STI started the day slightly higher and started to climb towards 3080 resistance level after bargain hunters entering the market. However, when the price reaches close to 3080 level, STI started tempering off. This happens after lunch hours when HSI turned negative and European market opened with a negative note. Participants of the market quickly switch from bullish sentiment to bearish sentiment during that period. Hence, STI returned back its intraday gains and close with only 0.78pts higher. STI remained at...

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Daily Market Opinion for 16-Aug-2012

Daily Market Opinion for 16-Aug-2012 STI failed to hold its bullishness yesterday as gloomy economic outlook plague the market. STI started the day by gapping down to 2078 level as Wilmar opened with a strong gap down in reaction to its poor earnings report. After opening, STI continues to slide down further as buyers were staying out of the market. STI hit as low as 3056 level during the lunch hours but it managed to rebound after lunch. The whole afternoon’s trading action was lacking of directions and remain flat. Even with negative opening from the European market, STI...

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Daily Market Opinion for 15-Aug-2012

Daily Market Opinion for 15-Aug-2012 STI continued its bullish streak yesterday after speculations of recovery of the different economies. STI started with a lacklustre opening as it open slightly higher. Trading activity was slow during the early session as participants of the market were looking for directions. After lunch hours, buying momentum started to pick up again as HSI took the lead in the bullishness. Positive Europe market opening propelled the price higher as STI test the immediate resistance level at 3080. Buying activity was strongly support by the increase in trading volume. Eventually, STI closed at 3087 level...

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Daily Market Opinion for 14-Aug-2012

Daily Market Opinion for 14-Aug-2012 Yesterday, STI started the week with a positive note by closing 10.61pts higher. The bullish movement for the day started off with slight gap down. But the selling pressure was weak as it was quickly overcome by bargain hunters lurking in the market. Despite weak market sentiment in HSI, STI was able to ignore the bearishness and continued to trade higher. This bullish momentum during the day did not meet any strong selling pressure and this resulted STI to close at 3064 level with 10.61pts higher. Last night, DJI failed to maintain its bullishness...

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STI is running the risk of uptrend reversal

STI is running the risk of uptrend reversal Again, STI experienced a strong start for the week but test 3080 resistance level on last Monday. The strong start comes with easing of economic tension but the bullishness was soon to ease off. STI failed to break 3080 despite its attempts for 2 days in a row. STI started to retrace before the national day holiday after China announced with economic data. This sparked another fear that the slowing economy of China might affect Asian economies; this lead STI to return 15pts of gains and close near the closing of...

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Daily Market Opinion for 10-Aug-2012

Daily Market Opinion for 10-Aug-2012 On Wednesday, STI was seen retracing further as traders unload their position for the national day holiday. STI started flat during the opening and did attempt to climb higher but sellers were waiting there. Further selling started when HSI opened and participant of the market became concern of the weak economic data from China. Selling pressure was seen for the rest of the day while some short covering was seen before market closing. STI ended with 15.49pts down at 3052 level. For the past 2 nights, DJI was trading flat with 7.04pts up and...

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Daily Market Opinion for 8-Aug-2012

Daily Market Opinion for 8-Aug-2012 STI attempted to break 3080 level again yesterday. STI opened with a slight gap up and surge above 3080 level during the early trading session. However, sellers were waiting for their chance to exit at this resistance level. STI went tumbling down after reaching as high as 3086 level. Strong selling pressure was seen after lunch hours causing STI to hit as low as 3066 before buyers started to stream in. However, before market closes, another wave of selling pressure caused STI to close at 3067 level. STI ended flat with merely 4.08pts lower....

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Daily Market Opinion for 6-Aug-2012

Daily Market Opinion for 6-Aug-2012 STI form a year high yesterday after positive reports from the US & European markets. STI started with a strong gap up in the opening and attempted to trade higher. STI reached as high as 3086 level before sellers attempted to profit take. 3080 resistance level seems to be a strong resistance level which prevents STI from going higher. Before the market closing, more sellers came flooding into the market which caused STI to close at 3071 level eventually. STI was up 20.49pts for the day. Last night, DJI managed to close 21.34pts higher....

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STI’s uptrend likely to continue but trend reversal risk is still possible.

STI’s uptrend likely to continue but trend reversal risk is still possible. Last week, STI faces bullish reaction in the market as fears of crisis subsided after speculations of stimulus is to be emplaced. This brought buyers to enter the market on Monday which lead STI to test 3030 major resistance. Despite a gap down start on Tuesday, the buyers still managed to push STI above 3030 level with strong volume. Such bullish movement have confirmed the breakout of the major resistance. For the last 5 days of the week, STI held well above 3030 level and this resistance...

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Uncertainty and Volatility to persist in STI.

Uncertainty and Volatility to persist in STI. STI experienced a volatile week last week as economic news were affecting the market sentiment. First, news of Spain requiring a bailout package shook the market during the early week. This caused STI to open the week with 33pts lower and hitting as low as 2973 level. Despite expectations for STI hitting as low as 2950 level, STI refused to test that level during the week. This was partially due to the positive comments by both US and China leaders on the possibility of stimulus. Therefore, STI managed to recover from the...

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