Trend change?

First of all, to answer a question Koori sent to me via text message, Jay answered by saying yes, the charts in the ChartNexus software drawn with all the lines and all, can be saved under workspace so when u close the program and reopen it, it will still be there. U dont have to export the chart out per se. Hope that helps!

Alright what do we see. It does seem the Dow is still facing that major resistance. Question is, will it break out?

On the STI however, I will now have to swing the bias to the upside and although due to overbought indications upside may be limited, I’ll raise my target from the major resistance at 1960 to perhaps the 2100 region where 200MA is. So upside means, shorting is no longer a good idea. Look for chances to go long. Where? A good retracement to 38.2% is perfect. UOB covered its gap support and bounced off but never retraced to 38.2% even yet. Capitaland, Citydev and SGX are forming a bearish M formation BUT capitailand has broken out! This is confirmation of a trend on the upside.

The market was heading sideways before rallying into the closing. Sideways was an attempt to squeeze both long and shorts out which is an expected behavior when consolidation is occurring for a trend continuation.

Some stocks I am looking out for is Midas, SIA, SGX (breakout). We were looking at StraitsAsia but sorta missed it somewhat. 1.03 is a top resistance so lets see how it goes. $1 is an important even number play. I do expect oil and commodities to continue their uptrend so let’s see if I can find a spot to enter. This IS a super rally indeed. What I will be looking out for is mad and panic buying, and where no shorts are left and everyone’s on the bus on the upside. That, will not be healthy. GDP forecast revised downwards and still market discounted that fact. Strong trend. Does not imply the bear is over but this bull trend can be treated as a typical bull market trend where resistances are broken and supports hold. Higher lows formed everywhere while some have already been forming mid term higher highs. That is bullish. Any retracement towards 38.2% retracement support is a nice entry and traders will likely be looking to go long there, offering more support.

The first indication that the above is wrong and the tide has changed is when the 38.2% begins to crack, before testing the MA supports below as well as 50% retracement and possibly gap covering as well. I will be watching and if there’s anything interesting to spot, I will add.

Bottom line? Look for retracement to go long. Cut losses should be relatively near. It is hard to go long at current prices as risk reward is bad for upside.

Stay tuned!