Weekend review of DJIA and STI

Dow Jones look pretty suspicious to me. It seems like a healthy retracement is taking place with the declining volume being seen. On the other hand, I was expecting it to test the trendline as a supportive trendline with the retracement at least but it just fell through the trendline as though the trendline was not there. I am not certain about the direction as of now but it seems to me that the breakout of the resistive trendline was just a facade and this breakout did not carry on with strength.

Dow Jones Industrial Average:


I went to Bear's blog and took a look at his latest posting and his sentiments were the same as mine. It is strange that DJIA had 3 black candlesticks in a row while the STI had 3 white candlesticks. STI seems to be diverging from DJIA and i suspect this is due to the bullish sentiment in the s-shares. If that is the case, we should see STI converging back with DJIA soon. Once again, the breakout of the resistive trendline look suspicious since there was no volume to support the rally after the breakout. Maybe one should take a waiting stance first.

Straits Times Index:

Not just another technical rebound

Dow Jones broke out of it's major resistive trendline two closings ago and it ended with a doji candlestick. In my opinion, this is not just another technical rebound which we have seen for the past few months. Usually after DJIA ends with a huge white candlestick, the next day will likely to be a black candlestick but for this time round, we are only see a doji. However, the volume looks suspect since it is so light and this is not what is expected of a strong rebound. The next resistance level is around 12785 which was the resistance on two previous occasions.

Dow Jones Industrial Average:


For the Straits Times Index, it broke out of it's resistive trendline too and it was accompanied by heavy volume. There is a gap resistance at around 3000 but i think it should not be a concern since STI is quite bullish now judging by the volume and the gaps being formed.

Straits Times Index:

Weekend review of DJIA and STI

Currently, Dow Jones is near the major resistive trendline. I was expecting it to dip back to it's major support level after thursday black candlestick closing but it rallied on friday but failed to close above the major resistive trendline. Last friday's white candlestick was done with heavy volume so that adds to the risk of going short but on the other hand, since DJIA is now near the major resistive trendline, there is a good chance that it will rebound off this trendline. Furthermore, notice that for the last 3 days, DJIA failed to hold fibbonacci retracement of 61.8%.

Dow Jones Industrial Average:


For the Straits Times Index, the support level seems to hold and it remains to be seen whether the minor resistive trendline will hold as a resistance level. Otherwise, nothing much to comment since STI takes it's cue from DJIA.

Straits Times Index:


I been tracking Sembmar on my watchlist. Currently, it seems to have rebound off the major resistive trendline and notice that the black candlestick was accompanied with heavy volume.

Sembmar:

DJIA hitting major resistance

Dow Jones will be testing a major resistive trendline tonight and we shall see whether it can break through this trendline. This trendline has held for 3 occasions and that adds to the strength of this trendline. Candlestick theory will help to decide whether this trendline is likely to hold this time. I am watching out for a doji or an inverted hammer with long wicks this time. It will be a bonus if the Dow Jones can close slightly higher on green tonight.

Dow Jones Industrial Average:

Weekend review of DJIA and STI

I been busy with my school work so I have not been updated my blog for the past week which i apologize for that. For the past week, the piece of important news that came out was that the Fed will pump in money and that cause the Dow Jones to register it's highest gain in 5 years. On hindsight, i should have shorted the rally since following the rally, an inverted hammer was formed on the trendline following the breach of support for the descending triangle and i failed to see that on my chart.

Currently, DJIA is being resisted by a minor resistive trendline and this was done with heavy volume. DJIA is now in the middle of a major support level and a major resistive trendline. My trading strategy still remains the same as my previous post; short at major resistance or breach of support.

Dow Jones Industrial Average:


For the Straits Times Index, the chart is quite similar to that of the Dow Jones so I am not going to comment much on it.

Straits Times Index:


The next date to look forward to will be the Fed meeting which is on the 18th of March or rather, this coming tuesday. We shall see what happens next but I am beginning to have doubts of the ability of the Fed meeting to swing the market up and down since the market is getting relatively immune to it.

Weekend review of DJIA and STI

There has been some important movements for the Dow Jones. On thursday, it broke the 61.8% fibbonacci retracement support level. This means that technically speaking, we are likely to see it testing the January low level of around 11700 somewhere this week. The only thing is that the volume is not that heavy with this current dip so it's a minor thing in my humble opinion.

I dun profess to be able to predict the future so I reckon there are 2 ways which the DJIA can move in subsequent closings. 1st of all, the Fed meeting which can swing the markets is on the 18th of March which is 9 days away from the time of this post. During this period of 9 days, we should see DJIA dipping to around 11700 and hover for a while. It may swing up slightly depending on any rumors of the outcome of the Fed cuts but that is not important. If the Fed cuts are to the satisfaction of the market, we should see it bounce off the 11700 level to sustain a technical rebound. Likewise, if the Fed cuts are not to the expectations of the markets, we will see it break 11700 level into the middle of nowhere. This should conclude the macro trading strategy for the next 2 weeks. In short, if market bounces off 11700 level for a technical rebound, hold your horses for a while before placing a short at expected resistance such as the resistive trendline. If the market falls through 11700, capitalize on the downwards momentum by shorting it.

Dow Jones Industrial Average:


Nothing much for me to comment on the Straits Times Index. I'm just expecting it to hit the level of 2700 soon if DJIA break through it's support.

Straits Times Index:


SGX is looking very attractive to short. It broke it's January low of around $7.56 with heavy volume. Notice $7.56 has been a prior support twice and this looks like a good opportunity to short.

SGX:

DJIA on minor support

Dow Jones is currently supported at it's prior support level and the 61.8% fibbonacci level. Any break below this level and we will see it likely to dip all the way to the lows in Jan.

Dow Jones Industrial Average:


I was chatting on La Papillion's shoutbox when someone pointed out Swiber to me. A look at the chart reveals that it may be ripe for a short perhaps. We see the support level of $2 being tested twice in the past and now it is near this level again. Notice that the volume is picking up and if $2 is broken, one may place a short near this region.

Swiber:

Minor trendline testing for DJIA

Last seen on monday, DJIA formed a doji or a hammer candlestick on the minor trendline. This seems to suggest that a short-term support has been found. We just gotta see whether this trendline holds this time.

Dow Jones Industrial Average:


SembMar seems to be doing good except that it is doing great heading south. Technically speaking, there was a prior gap up at $3.58 and it is acting as a resistance level. Today, it tested this level successfully as a resistance level so this should be a good entry point for shorts.

SembMar:


I added a link to the Fed meeting dates since they are important dates which can swing the market. It's troublesome for me to google it and access that URL from the search results. Now i just need to visit my blog and I will know the dates straightaway :)

Weekend review of DJIA and STI

In my last post, i spotted a doji forming on a resistive trendline on the Dow Jones. And the very next thing was it rebounded off the resistive trendline and it closed very badly on last Friday's closing. I am more inclined to suggest that the candlestick for DJIA on monday should be relatively small since it is unlikely for very bad closings to repeat over and over again.

Currently, DJIA is supported on a minor trendline but last friday's candlestick was done with heavy volume so the move downwards should be relatively huge if it happens.

Dow Jones Industrial Average:


Currently, the Straits Times Index is forming a ascending triangle formation after rebounded off the resistive trendline. There is a slight MACD histogram bearish divergence. Similarly to the DJIA, there was a huge volume for last Friday's closing.

Straits Times Index:


I spotted quite a few counters trending with regularity. Sembcorp is one of those counters. It just rebounded off it's resistive trendline. Notice that there is a breakaway gap at $4.97 and we can use that as a resistance level to short. However, I think the current price has gone too far south so it may not hit this level again.

Sembcorp: