Weekend View

Hello all!

Bz weekend but let me run through some charts before I head to bed.

In short, markets have been on extreme light volume which is to be expected as  traders are away on holiday. It is obvious to see how much volume traders generate, and how small retail investors are involved especially when so many are on holiday too. This light vol is expected to continue into Jan.

The STI weekly chart is still terrible. It does look like a bear flag with the decreasing volume.  The bear flag will be confirmed if the support is broken, but as you can see we are a long way from there. Look out for the same 1680 support first which is gap cover support. The flag will be violated if 1912 can be broken. I am however, lowering my upside price target to that level for now. I am awaiting a pivot day to come so  that I can calculate the immediate term’s momentum. At the moment it doesn’t look pretty. By end of next week I may have some clue so let’s see. For now,  I am maintaing the neutral stance on the index, with a downside bias early next year.

I have 2 buy calls. Cosco and Yanlord.

Yanlord has a small bearish divergence but I don’t really think it is a bad and obvious one on the RSI but the stochastic one is. So I think that needs to be watched. My buy call comes from the bounce off support, though indicators are mixed. There could be limited upside and I put my price target at 1.09, which is where I will close my long positions probably.  Based on risk/reward and signals, I rate this a 2/5 buy call.

Cosco, looks better. Nice bull flag, with a bounce off at support. Lacks volume, and indicators have not turned into a buy call yet but it is nice enough to do one. With a pretty good risk reward, this is a 3/5 buy call. Confirmation is seen.

Do take note, that for buy calls, it means I see a good probability of it heading up. This implies it has at least a 70% chance of an upside.

For a watchlist, try KS Energy. I do love the risk reward, and the bounce off support. The only problem is the volume. I will be watching it carefully for a brust on the upside with volume. I do not wanna take tikam trades now because it may decide to head the direction as Midas. Keep a lookout!

And here is of course, midas. Look at what happened to my tikam. Now it is trending sideways instead. Goodnesss knows how long it will take. And I dont like the fact that it has been using 20MA as resistance now. I may decide to close half my long positions if things do not improve. So this is the result of a tikam trade before confirmation.

So keep my calls in mind! But remember, caveat emptor.

What I think of the market? My calculations point to favoring waiting for the rebound and place short positions at key resistance levels. This brings the whole scenario into a sell into strength, with a limited upside bias. I simply cannot see how much upside it can head, but let’s wait for the pivot day to come and perhaps I may have a change in view then. It is not gonna be easy but I will try and have one by next weekend. This pivot would actually be more or less for the first half of the year. Another pivot may determine the immediate term’s trend.

Meantime have a wonderful remaining weekend!