I do not like the idea of opened high closed low

Remember this posted http://achua138.blogspot.sg/2014/02/i-do-not-like-idea-of-open-high-close.html ?

Look at the STI chart, what did you see?  How many opened high closed low candle sticks were there?  Longer tails facing upward especially yesterday with a addition of big red body.  It showed that the big boys pushed the index up in the morning and after that they did a so called "profit taking".  When is this going to stop or where STI is heading towards.

We saw NADSAQ and S&P broke new high.  And DOW too, only it did not manage to close at new high.  So what happen to STI?  Remember I said that recently STI followed China indices much closer instead of US indices?  Look at recent China indices.  What happened to them, up or down?Down, isn't it?

Remember what I said about US indices when it correction took place?    http://achua138.blogspot.sg/2014/08/last-thursday-dow-dropped-300-over.html  "Just ask yourself, you want/plan to enter when DOW stay above 17000?  If you no, I no, fund managers no....then how?  Yes, you need the index to come down, isn't it?".  In that post, I also mentioned to watch the resistant level that I drew on the China and Hang Seng charting.  From here, you can see funds moved from East back to the West.  So when the funds coming back to the East again?

When the big boys earn enough profit, they will definitely move their fund to somewhere else.  Whether to Eastern stock market, commodities..........or gold, we just need watch closely on the product movement that you are trading.  US indices are on the high side again.  So, watch careful when the fear wave comes in.  That is the time where the funds start to move from one place to the other.   

STI, at this point of time, base on TA, as long as it stay above 3288 and at best above FIBO 161.8%, there is still a chance of her to test last year high.  Beside that, watch the China indices movement plus what I always use to say - respect and knowing who is the big brother.  As he sneeze everyone feel the...........  On top of that, a few things to watch out like Ukraine.......and of course the interest rate.

EUR/USD finally touches FIBO 161.8%

After 22 days of swim, EUR/USD this morning opened with a gap down and finally touches FIBO 161.8%
So what's next?  FIBO 161.8% is also a support level.  If the bear continue pounding, look for any candle sign at 1.3105 level.  If 1.3105 could not stop the bear from pounding, the next level that I will be looking at is 261.8%

Market shake because Obama authorises Iraq air strikes on Islamist fighters?

US President Barack Obama says he has authorised air strikes against Islamic militants in northern Iraq but will not send US troops back to the country.

 As I always mentioned today US is under President of Obama.  The way he handle international issue is totally difference from previous US president, Bush.  Listen properly and capture the important words and sentences that he used. 

"The US cannot and should not intervene every time there is a crisis in the world," Mr Obama said.

US could not turn a "blind eye" to the prospect of violence "on a horrific scale", especially when the Iraqi government had requested assistance.

"We can act, carefully and responsibly, to prevent a potential act of genocide," he went on. "Today America is coming to help."

He said that US air strikes would target IS fighters, should the militants' convoys move toward Irbil, where there is a significant presence of US diplomats and military advisers, or threaten Baghdad.

In addition, he authorised strikes "if necessary" to help Iraqi government forces break the siege at Mount Sinjar and rescue the trapped civilians.

He added that the US could and should support moderate forces that could bring stability to Iraq, and he said there was no "American solution" to the turmoil plaguing Iraq.

"The only lasting solution is reconciliation among Iraqi communities and stronger Iraqi security forces," he said.

For a president who is still busy withdrawing his troops from Afghanistan, what do you think, to bring the whole troop to Iraq?  Well.......only when he doesn't have a choice or there is really a need. 

We have Iraq issue over here and we have Israel issue too.  Keep a close look up on their progress.  I am very concern on the sanction war between Russia and the US and EU.  How US and EU response to the recent sanction by Russia, watch out on that too.  The impact to whole world economic can be as great or even greater than the earlier two. 

DAX has already dropped 10% from its peak

US and Europe imposed sanction on Russia.  It was mild at first but have been tightened sharply since Malaysia airliner was brought down.  Now, the US and EU are targeting at Russia's defence, oil and financial sectors.

What does and how does Russia response to this sanction? 

Russia will ban all imports of food from the US and all fruits and vegetables from EU.  Putin ordered his government to come up with a list of agricultural products from countries that had imposed sanctions on Russia, which would be banned in retaliation.  A sweeping response to the US and EU sanctions imposed over its support for rebels in Ukraine. 

War of economic sanctions?  Who is going to be the winner?  Who is going to get hit?........Just quote one - it will hit consumers at home who rely on cheap imports, and on farmers in the West for whom Russia is a big market.  Moscow is by far the biggest buyer of European fruit and vegetables and the second biggest importer of U.S. poultry.

Russia imported $43 billion worth of food last year.  Russia bought 28 percent of EU fruit exports and 21.5 percent of its vegetables in 2011.  It was the second biggest buyer of U.S. poultry after Mexico last year, accounting for 8 percent of U.S. chicken meat exports.  Do you know Russia since the early days after the Soviet Union, when cheap American chicken quarters sold at street markets were called "Bush's legs" after the president.

Stock market moves ahead economic.  Let's look at EU market.  Whether is FTSE, DAX or CAC, dropped, dropped.....DAX took the lead, it has came down 10% from its peak.  Nevertheless, it is at critical support level - between 8900 to 8980.  If this support broke, the next one is at 8460.

Last Thursday DOW dropped 300 over points, are you conern?

Last Thursday DOW dropped three hundred over points, NADSAQ and S&P dropped 2%.  Friday DOW dropped another 0.42%.  DOW had came down about 4% from it peak.  Are you concern?

Just ask yourself, you wanted/planned to enter when DOW stay above 17000?  If you no, I no, fund managers no....then how?  Yes, you need the index to come down, isn't it?  This is how the game play.  This was the reason why when a lot of analysts said DOW will reached 20000, I said hold your breath.

Let's go step by step.  DOW first support is between 16300 (current 200MA) to 16350.  Second support between 16000 to 16060.  Third support 15700.  S&P first support 1920, second and its major support at 1860 (current 200MA also there).

 

China and Hang Seng recently going strong because of Shanghai, Hong Kong Stock Connection 沪港通。Remember I mentioned about this?  http://achua138.blogspot.sg/2014/06/2014-half-year-review.html    I believe 沪港通 is only the first step.  We are going to see more connection as long as China government see positive outcome.  深圳, Hong Kong Stock Connection?  What about China, Singapore Stock Connection?  Watch out if it happen.  For the time mean, watch the resistant levels that were drew on charts. 

 

STI recently follow  closely with  the China indexes.  But again, as I always said you must still respect and knowing who is the big brother.  First support for STI at 3300, second support 3220.

 

 Last but not least, beside any unpredictable incident, war, disaster......one important thing that I have been monitor very closely is interest rate.  When will US raise the interest rate?  http://achua138.blogspot.sg/2014/06/2014-half-year-review.html  Yes, CPI, USD, 10 years US Treasury.  And do not forget, stock market moves ahead economic.