Mid week peek

A few have been asking me why I have been quiet of late. 2 main reasons. First of all, I am rather busy trying to get my property purchase sorted out. At last, freedom possibly! I’ll have my dear godsis come live with me along with a friend of ours who is coming over to work in Australia. If all goes well, it will be a blast.

Secondly and the main reason is, there isn’t much to say. Nothing much as changed since. The SSE is terribly weak, the HSI is fine doing a healthy retracement it seems. The STI also appeared to do a healthy retracement last week. Until supports break, I would say the trend continues to be in consolidation mode, and possibly attempt a breakout.   The range on the STI has been getting tighter and tighter and as it remains undecided if it would be breaking up or down, it is best not to trade. I can share though, that I have an STI call warrant in place.  The consolidation is not unusual, given the need for the MA to catch up with the current price as support. If MAs begin to turn down/bearish crossover it will signify weakness for the upside, even though indicators are usually late.   I will be eying the HSI to see if it can get itself above the breakout support turn resistance. Any downside on the HSI will likely pull the STI lower while upsides will give the STI some reason to breakout.

The US markets retraced healthily and rebounded off the breakout support, triggering a buy signal.  Beware of divergences in anything you look at though. My partner Jay has been away on reservice. We will come back to analyze the markets proper, soon. Meantime, I am not going to play breakout but instead wait to see where the next move will head towards, and react when it happens. STI’s 2700 remains a very strong resistance and if this breaks out and re-tested to be true, it would probably provide a good new support.