The Best Options

With the financial economy still fragile, STI has been trading sideways since entering August 2011.

 As volatility racks the mkt, it is a better option to stay out of it until there is a clearer picture of the direction that STI is taking.





DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

SunVic - New Jewel of S-Chip?

 Is Sunvic the new darling of S-Chip? Having being battered since May, this counter stock price has been 47.6% since its top. However, it uptrend is still intact and it is now currently value at its NAV of SGD 0.59. With the increase Open Interest in Sunvic, it is probably time to get this counter under your belt.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

CapMallsAsia - Start of an Uptrend?

Is CapmallsAsia (CMA) downtrend stopped? Looking from the chart, it seems that the bear is finally exhausted and the bulls are coming to take over.

Analysis:

• An exhaustion gap is seen at 19 Aug 2011 as it gaps down to 1.14 on that day.
• A doji is form on 19 Aug 2011.
• Subsequently, the next 2 days the price's closing is higher than the precedence.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

STI Index Direction - DTD 23 Aug 2011

STI closing is coming to the support of 2680 (Point B). Can this support hold? Let's analyze:

Analysis:

• The market is weak and the bear is strong as the selldown is above its 20D VMA
• There are no catalyst in the market for traders to LONG stocks as Europe and the United States are still in limping condition 
• Closing for the day display a spinning top, which mean buyers and sellers are in a tussle.
• If STI market bounce off from here, we could probably see a technical rebound.
• Else, we may see a breakdown of 2010 low and a free fall in STI may happen as it may fall back to Yr 2009 lows. CAUTION!!

 
DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

STI Index Direction

Where is our STI Index heading?

As you can see from the chart, STI is now touching the classical support at 2720.  

Will 2720 be able to hold?  Let's analyze:

1. The volume on the last day closing indicated that there are fear in the market and the sell down is escalating as the volume is above the 20D VMA.
2. The closing on Fri 19-Aug on US market is weak, as it is down by 1%.
3. There are no corporate news as the reporting period is almost over.

With the current analysis above, it is possible for another week of sell down. Let's watch and see.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Identifying Trends

Here is an example of a chart that i have drawn to show trends.

Using DJIA as an example, DJ has been in the uptrend along the two parallel lines since 2010. To draw a trend channel, use a parallel line tool and draw it such that the peak and trough of the index touches two or more peaks and two or more troughs.

As you can see from the chart, candlesticks that runs out of the trend channel is called exhaustion trends and usually after a few days of trading, it will be pulled back into its normal path.




DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Tools of the Trade: Moving Averages

It is unbelievable that many people in the market invest in a stock based on rumours or from friend's recommendation without understanding the underlying stocks technical.

Stocks may go up or down as it depends on the market sentiments and performance. As such how do you measure the strength of the underlying stocks. Overbought or Oversold or in neutral zone. It is mind-boggling to any person or a investor without understanding the tools that are used to measure the stocks. Thus i would like to introduce to you common tools used by a market trader to measure its performance.

One of the common tool used is : Moving Average (MA)

• It can be simple, weighted or exponential MA
• Changes in the price trend are identified by the price crossing its MA and not a reversal in direction of the MA
• Price finds support at MA in a rising trend while resistance at falling trend
• The longer the time span covered by an MA, the greater the significant of a crossover signal

Suggested Time Frame setting for MA

Short-Term                             Intermediate Term                            Long Term
10 days                                          30 days                                       200 day
15 days                                          50 days                                       225 days
20 days                                          65 days

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Position for Trends Play

 In this article, I've used the chart of Mewah International as a discussion topic for looking into trends

As you can see from above, the analysis of Mewah is that it is now in a BEAR trend. Starting from 18 Jan 2011, the price has been moving down from 1.20 to 0.87 (see A). After there is a technical rebound (see B) and it end lower on 25 Jul 2011 at around 0.77.

The above counter from its high price of $1.20 till $0.77 takes 7 months to move lower. As the latest price show that this stock may go for a technical rebound as it is oversold. However, i would consider this stock a BEAR stock with a primary trend that may last 9 mths to 2 yrs.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

The Trend is Your Friend. Partner with them

In understanding the stock market, a novice trader must know and understand that the TREND is your friend.
Basically, there are 3 important trends:

• Primary Trend - It could be a bull trend or a bear trend and it last from 9 mths to 2 years.
• Intermediate Trend - A trend that could last 6 weeks to 9 mths
• Short Term Trend - Usually 2 weeks to 4 weeks

There are 2 more trends that are worth knowing and they are as follows:

• Intraday Trend :- recommended for short term trading using 1min, 5 min or 30 min chart. Usually this type of trading is influenced by News and Psychology.
• Secular Trend: - This trend will last 10 - 25 yrs and it usually consist of a number of primary trends.

The above information is extracted using the below reference:
TECHNICAL ANALYSIS EXPLAINED, 4th Edition by Martin J Pring.



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Dimesions of Stocks Trading

In order for us to trade stocks, we need to learn the different dimension of reading a stock. This means when it will give us a buy signal or a sell signal.

I have currently summed up the learnings of stocks analysis and trading into 5 dimensions namely:

1. Price
2. Volume
3. Psychology
4. Time Frame
5. Trends

By correctly identifying each of its unique characteristics of the underlying stocks, a trader is able to take advantage of the Buy LOW and SELL HIGH concept and to ride out any trends that the stocks presented to him.


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Identifying Yourself

Hi,
    A lot of people trades in the stock market. They are simply retail investors trying to get a source of income so as to increase their savings. However, most people whom i have know in the market, do not identify themselves as what type of investors are they.  In the end, they will tend to chase stocks and often get themselves burnt. That is when they will decide that stocks are high risk.

   Unfortunately, this is the classic case. Take it as a learning experience. You need active participation once you have stocks holdings.

   Generally, there are 3 types of investors that can be summarized:

1. Position Traders: - Position traders are people that buys the stocks and treat it that they are co-owners of the business. They hold this stocks for long period of time.  Their mantle: BUY and HOLD philosophy applies. They will only sell when these companies is unable to innovate or when it is regarded as a sunset industry due to changes made to the industry. Their Buying and Selling of stocks is based on FUNDAMENTALS of the company. They are also known as investors. Their risk appetite is usually LOW.
2. Swing Traders: - Swing traders are people whom buy and sell their stocks in a time frame of holding between 2 weeks to 2 months. This is the most common type of characteristics that you can find in the market. They use charting tools to assist them in Buying and Selling. Risk Appetite is MEDIUM. 
3. IntraDay Traders: - These traders are know to be fast and furious. They trade on news and will usually close their position within the same day. Their RISK Appetite is VERY HIGH and usually this type of trading is for professional traders only. 

So having to discuss the 3 types of investor character, so what are you? If you like me, am a swing trader you can look forward to my blog as i'm starting to post on using the tools of the trade to help you to buy and sell in the market.

What affects the stocks price?

Hi,
   I believe if you have purchase a stocks before, you will know that the price of each stocks differs every day. Sometimes, you purchase at a price which is perceived to be high, while at other times you may purchase it at a low price. So what makes a stocks price moves up and down?

It all boils down to a few factors:

1. Economic news and events of a country
2. Company earning announcement
3. Forecast earnings outlook
4. Analyst upgrades and downgrades
5. Mergers and Acquisitions
6. Confidence to Management level
7. Lawsuits
8. New product launches or failures
9. Insider buying/Selling

With all this few factors in mind, you need to be nimble to closely monitor your stocks such that it will not become a worthless piece of scrip.

Getting Started on Singapore Stocks

Everyone need to start somewhere in order to learn new things.  To learn more on charting the singapore stocks, we need of course, tools and the Singapore stock prices.

A piece of software which is free and easy to use is chartnexus. This software can be easily downloaded from
http://www.chartnexus.com/

Hi

Hi,
   I've decided to start a blog after posting on Facebook as information is gathered and post. In this blog, i will focus on the tools of the trade used and probably blog on using different setups to enhance our trading skills. Please note that not all tools will be used as there are thousands of tools in the market.. I will stick to what i have learn.

If you have anything to share, please comment. We're all open to learning.