Stock Market is directionless?

A lots of traders, economists and analysts warned everyone to stay out, the stock market was directionless.  To me, I see some great movements over the past 2 weeks.  Just look at STI, broke 3200, came down and touched 3160 support and last Friday closed just above 3200. 

 

STI

Second week of October to end October, STI went up from 3120 to 3230 resistant.  Although index were up but if we look at TA, volume was low, 85% of CS were black candle sticks over that past 3 weeks.  That worried everyone.  Because of that, I kept saying market needs a pull back/retracement.  Finally, it happened.  Beginning of November, STI came down from 3230 to 3160 support.  Although STI came down, but again I looked at the volume, it was low.  In other word, it tells me that the big fishes were not getting out.  Since they were not getting out, why must I.  Just be alert and trade with care.  Last Thursday and Friday something happened to US and STI went back above 3200.

 

Today, if we look at the charting, STI formed a triangle.  Second week of October, STI formed an inverted head and shoulder.  As long as STI doesn't fall below 3120, the inverted head and shoulder is still valid.  But then on the other hand, STI recently also formed a head and shoulder.

 

US market

I see some retracement plus little consolidation in DOW.  Its broke record high one after the other.  Especially after Janet Yellen, the nominee chairmen of the next Federal Reserve, said that the central bank should take care not to withdraw stimulus too early.  It's important not to remove support, especially when the recovery is fragile and the tools available to monetary policy, should the economy falter, are limited given that short interest rates are zero.  Her statement shake the global equities market.  It seem like this lady works like Ben Bernanke. 

 

The charting now, show a step ladder on the recently up trend.  Last Friday, Marubouzu white showed up.  This Marubouzu white can be a double headed sword especially it appeared at that high level.   

 

China

Third Plenary Session had ended.  Immediately next day after the session end, China market plunged close to 2%.  Economists and analysts said that they were disappointed with the Third Plenary Session meeting outcome.  The detail has not out yet, but all these economists and analysts started to condemn the whole things.  Gentlemen, as a trader, I need to know how all these institutions, big fishes......how they trade.  Push down the price, hit the support, go in and buy.  Buy low sell high!

 

Analysis / Things to watch out

Dow - watch out for the next 2 days candle sticks plus 5 to 10 days movement/price action.

China -  more detail on the Third Plenary Session will be out soon.

STI - The next 2 week is a critical week for STI.  I would like to see STI broke 3230 to get away from the recent head and shoulder.  

Nothing goes wrong, DOW should be heading 16000 as I mentioned on 15-August.  China and Hang Seng should be interesting.  STI should break 3230 and toward it next resistant at 3250 and the next one 3280. 

Whatever it is, trade with care.  Today market is mend for trade.  Before you buy any counter, make sure you know and have a stop loss with you at all time.