A look around

The STI has recaptured its uptrend line but before the champagne is popped, the momentum is still rather sideways. ADX is weak (suggesting there is no trend) with the +ADI looking to cross upwards towards the -ADI. RSI is weak, MFI is weak. The previous high could be retested again but may prove to offer quite a fair bit of resistance. I am still awaiting for a trend to form. This has not happened.

Investors of  SPH did not like the price the latter bid as it was a premium over the next bidder. I find this subjective. To me, it doesn’t automatically imply they overbid. It could imply the next few bidders simply bidded too low. I haven’t done FA on this and I reckon Alvin will do a far better job than I ever can. From a TA point of view, a break below 3.65 is nasty. It is due to go XD in a couple days with an 18c dividend so do note that in price calculations. I have always felt SPH have been careful in their bids. Could this be a one off bad bid? I will let Alvin comment.

Capitaland took a rebound but till 20MA can be cleared, I would high suspect if it is a mere tech-rebound. I am vested in it however.

So what is my take on the market currently? Still very challenging. Not ideal to trade in. I would suggest a short-mid hold on a stock that suggests potential upside in the near future. Have wider enter and exit levels with a generous stop loss to minimise whipsaws.  The banks (especially UOB) had a star performance in the charts and I really wonder what’s next? Crude oil? Property? Don’t anticipate. If you must trade, let the sector tell you when it is time. One of the enemies to a  trader is time. Volatility can be a good thing but it can also be a bad thing depending on your style of trading.At this juncture there doesn’t seem to be any major upsets during the reporting season thus far and I do wonder if it is for real? When in doubt, don’t trade.

I am gonna do some house shifting and will be preparing for an exam early Dec hence needless to say it will be one heck of a ride. Until I get some sign from the market that indeed there is a trend forming, I will be taking a break from trading. I might pick up one or two things here and there and if it is due to pure TA as a reason for entry, I’ll write about it