Finally, House of Representative passed legislation to increase debt ceiling and re-open the government after 16 days of shutdown. The bill will finance the federal until 15-Jan'14 and borrowing limit would be raised until 17-Feb'14.
China third quarter GDP matched analyst forecasted number 7.8%. With these 2 good news we see S&P hit another record high 1745 on last Friday. NASDAQ crossed previous 3817 high, closing at 3914 on last Friday. Analyst and economist think that because of the earlier debt ceiling issued, tapering will only be kick off on 2014. December Christmas is coming. With these few reasons, I see the possibility of DOW hitting another record high of around 16,000 by this year.
STI should not have a problem to cross 3200 and probably 3230 which may give some resistant to STI. Nevertheless 3280 to 3300 will be a challenge to STI.
Now to December should be a good months for equities market. By having said that, a few things that require us to take note, recent companies reports (index up but your counter flat, remember to select the correct stock) and the monthly US economic reports. Analyst and economists think that tapering will only be kick off in 2014. What happen if say Bernanke next month announce tapering to be kick off in December? Something I need to watch out for. Lastly, any unforeseen things happen.
Happy trading. For STI to move, blue chip and STI counters need to move. Then follow by mid cap and lastly penny counters. Lately, Asiasons, Blumont and LionGold shocked everybody. Big boys, fund managers and retailers, all got burned. Avoid penny stock for the time been. Nevertheless, penny stock will be back again. (STI chart refer to my last Friday posted)
China third quarter GDP matched analyst forecasted number 7.8%. With these 2 good news we see S&P hit another record high 1745 on last Friday. NASDAQ crossed previous 3817 high, closing at 3914 on last Friday. Analyst and economist think that because of the earlier debt ceiling issued, tapering will only be kick off on 2014. December Christmas is coming. With these few reasons, I see the possibility of DOW hitting another record high of around 16,000 by this year.
STI should not have a problem to cross 3200 and probably 3230 which may give some resistant to STI. Nevertheless 3280 to 3300 will be a challenge to STI.
Now to December should be a good months for equities market. By having said that, a few things that require us to take note, recent companies reports (index up but your counter flat, remember to select the correct stock) and the monthly US economic reports. Analyst and economists think that tapering will only be kick off in 2014. What happen if say Bernanke next month announce tapering to be kick off in December? Something I need to watch out for. Lastly, any unforeseen things happen.
Happy trading. For STI to move, blue chip and STI counters need to move. Then follow by mid cap and lastly penny counters. Lately, Asiasons, Blumont and LionGold shocked everybody. Big boys, fund managers and retailers, all got burned. Avoid penny stock for the time been. Nevertheless, penny stock will be back again. (STI chart refer to my last Friday posted)
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