A Trader's Journal
Sometimes, it is rather interesting to see what the reporters wrote. When you read the newspaper it is already too late. Rather useless and to the point of stupidity.
Correction, profit taking, retracement, you name it.
This shows that a stop loss and an exit plan is definately critical.
The question now is where is the support?
Try to understand this – a support is only a support when it is supported. Price action rules.
DJI – The index has made new high again. Its previous resistance of 15,100 to 15,200 only held for 5 days and was broken. The momentum is strong. These resistence levels have turned into its immediate support now. The next strong resistance level is at 15,600.
HSI – The Hang Seng Index has made a nice recovery but was slightly retracing for the past 1 week. A nice support will be at around 22,520 and the next one at 22,180. The index will likely to take a break now and consolidate before continuing its direction.
STI – Ever since the Straits Times Index broke out of its trading range (that lasted for a few months), it has been inching its way up. It closed at 3,449 on 17 May 13 and reached a high of 3,458 on 20 May 13 (Monday). Concidentally, STI’s next resistance is a round number of 3,500 and the immdiately support is at 3,400. Besides technical, these are also psychological support. But prior to reaching the next level, expect some profit taking and consolidation. There are 5 little red candles for the past week although each of them edged up slightly by a few points a day.
DJI – The index once again has broken new high. The resistance of 15,100 – 15,200 was held for a few days. Although DJI has reached a high of 15,301 on 15.5.13 (Wed), it closed at 15,275 yesterday. It is stil difficult to confirm that the resitance has been broken since it is only 75 pts above 15,200 for only 1 day. To be sure, I would observe for another day or so to see if it is not a false breakout.
STI – The Straits Times Index will likely to be range bounded between 3,400 and 3,500 for the rest of the week till early next week. We need to give time for the index to gain momentum to go up again or to give time for people to realise that it is time to take profit. Nonethless, the support level will be the psychological level of 3,400.
Was unable to post earlier due to some personal commitment.
Nonetheless, my last market comments is still relevant for this week. I shall repeat and keep it short.
DJI – making its way to next resistance level of 15,100 – 15,200. And it did makes its way to 15, 077 as at now.
HSI – riding on DJ making record high, hang seng will continue its reversal.
STI – will stay above 3,400 after a small pull back.
After Blogging for sometime, I am wondering if my comments benefited you. It will be good if you can leave your comments or email me so that I can roughly guage if it is still worthwhile to continue writting weekly.
If you read the finance news below without looking at each market individually, I bet you will be confused.
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SINGAPORE, May 2 (Reuters) – Singapore shares touched a five-year high on Thursday, with DBS Group Holdings rising over 4 percent, its biggest daily gain in more than three years after posting a record profit for the first quarter.
The Straits Times Index gained 0.9 percent to 3,401.00, while the MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3 percent.
Shares of DBS, Singapore’s biggest lender, jumped nearly 5 percent to S$17.59, the highest since May 2008. It was trading at S$17.51 at 0435 GMT, on course for its biggest daily climb since April 2010.
DBS reported a record quarterly profit of S$950 million ($770.32 million), up 2 percent from a year earlier, boosted by annuity businesses and stronger capital market activities.
“DBS remains an Outperform and our high-conviction top pick in Singapore banking,” said CIMB Research.
Shares of Genting Singapore Plc rose 4.23 percent to S$1.64, matching a peak in February, after casino operator Las Vegas Sands Corp posted better-than-expected first-quarter earnings on good results in Macau and Singapore.
Genting Singapore is due to report its quarterly earnings after market close.
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AFP (2 May)- Asian markets slipped Thursday after US stocks tumbled on the back of weak employment and manufacturing data, as dealers eyed a policy meeting of the European Central Bank later in the day.
Tokyo closed down 0.76 percent, or 105.31 points, at 13,649.04, Seoul fell 0.34 percent, or 6.74 points, to finish at 1,957.21, while Sydney ended 0.70 percent, or 36.2 points, lower at 5,130.0.
Hong Kong fell 0.30 percent, or 68.71 points, to 22,668.30 while Shanghai was down 0.17 percent, or 3.79 points, at 2,174.12, a day after official data showed that manufacturing activity in China slowed last month.
US markets fell Wednesday following the release of separate reports showing that job growth eased to its slowest level in seven months in April and that manufacturing activity had slowed sharply in the same month.
The data came as the Federal Reserve gave a tepid economic outlook at the close of its two-day monetary policy meeting.
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Dow Jones – The index has retraced to its older support of 14,450 – 14,500 last Friday (19 Apr 13). Day trader who stoodby this level and enter long would have benefit by now. DJI strongly rebounded to 14,719 on Tues 23/4. Do expect wider swings and higher volatility as the index climibs higher. The next strong resistance is at 15,100 to 15,200.
HSI – The Hang Seng Index made a strong climb last Friday (19 Apr) to 22,013. HSI has been making low since the start of the last week till Thurs, where it was nearly its support of 21,280. The index is in a short to medium term downtrend. The down momentum is likely to continue and thenext support zone is around 21,080 to 21,280. For a reverasl to occuer, the index must clear resistance 22,521.
STI – The Straits Times Index is still trapped in the rectangle (sideway). We shall expect STI t0 continue its sideway movement until it breaks its upper channel resistance and previous high of 3,331 clearly. However, from my observation, STI has been sticking on the upper reistance line. If this continues, it maybe soon that the STI gathers enough momentum to move up, breaking away from its restiance.
The Dow Jones has broken its resistance of 14,860 on Wed, turning this level from resistance to support. If the strength continues, we are likely to see the index hiting its next resistance of 15,100 to 15,200. Trader wanting to enter can wait for slight pull back towards 14,860 and enter long. There are probably some consolidation in the coming week before DJI making its way towards the 15,000 mark.
HSI – The Hang Seng Index was being rejected nicely by the resistance level of 22,185. The index is in a short to medium term downtrend. If you plot in the moving average, it is below 100 days moving averages but supported my the 200 days moving averages. Both the CCI and MACD are negative. The down momentum is likely to continue and we are looking at next support zone at around 21,080 to 21,280.
STI – The Straits Times Index has been trapped in the rectangle (sideway) for the last 2 months. CCI is negative again and MACD has crossed its signal line. We shall expect STI t0 continue its sideway movement until it breaks its upper channel resistance and previous high of 3,331 clearly.
DJI – The Dow Jones was accurated rejected by resistance level 14,680 last Wed. Its immediately support is at 14,450 – 14,500 zone. Currently, the index is trap within a tight traingle of 14,680 and the upper ceiling of the trend channel. Once the index break this triangle, we will see a clearer direction. At the moment, indicators points towards reversal. Both CCI and MACD are turning down. If the index indeed break down of the triangle, we are looking at next support between the region of 14,120 to 14,230.
HSI – The Hang Seng Index was being rejected nicely by the support-turned-resistance levels of 22,521 and 22,185. The index is in a short to medium term downtrend. If you plot in the moving average, it is below 100 days moving averages but supported my the 200 days moving averages. The down momentum is likely to continue and we are looking at next support zone at around 21,080 to 21,280.
STI – The Straits Times Index has hit its sideway resistance and is turning down. It has completed an evening doji star pattern and will be continue to be trapped in the rectangle (sideway). CCI is turning down again and MACD bearish divergence. STI will remain rather unexciting in the coming week.
STI was very near to its upper resistance zone of 3,320 on Thurs 28 Mar 13. However, it was a red candle and indicators did not give any conclusion as the index has been moving sideway for the past few weeks. We will need to wait for price action to confirm a breakout of resitance or continuation of consolidation within a tight zone. Although the bearish divergence has been there for weeks, ultimately it is price action the rules.
HSI performs rather badly and seems to continue falling for the coming week with indicators hinting continuation of downtrend momentum. Its support is currently at 22,185. We need candles to close below this level to confirm a breakdown.
Jayson's Financial Trading 