CapitaComm

STI broke traingle, boxing and 3120

As I mentioned before, once STI broke 3120, the reversed head and shoulder will be no longer valid. 

Last Friday, STI broke 3120.  Not only that, it broke the boxing, closed at 3114 and with all day low at 3098.  Let’s re-analyse the whole STI trending.

Let see the 3 decline lines that I drew.  Base on charting, STI is on the down trend.  Having said that, 8 weeks and first time we see a white hammer appeared between the 2 support lines (3120 and the middle decline line).  STI could have a retracement.  And how far can it goes? 

STI has lots of resistant levels – 3200, 3230, 3250, 3280 and now with another decline line that also serve as a resistant for STI.

Support level – the middle decline line, 3050, 3000 and the bottom decline line. 

Base on trading and investment psychology, those resistant points that I mentioned above, do not take it lightly.  Window dressing, the white hammer and recent Christmas rally, hopefully could give a push to STI.   In order for the STI to really turn bull, it needs to break 3300.

US market, I mentioned that many times, as long as tapering date is not fix, the roller coaster ride will always be there.  Remember the 10 years Treasury Yield?  Today, it is standing at 2.86 %.  Watch closely on this.  The US is selling $64B of notes and bonds next week, and FED policy maker will be meet on December 17 and 18.  Index Future is going to slow down soon.  There we come the end of 2013. 

2014, there are many things to watch out for.  As someone that I highly respect 胡立阳老师 said "小心，小心再小心".  Keep reminding myself, the market today is mend for trade.  Whether is gold, property…..or the equity market, next year 小心，小心再小心.  

3 counters that I mentioned early last week - KepCorp, Noble and Wilmar, take profit.

Important strategy that every investor and trader should know - "Why Cut Loss / 背水一战"

Thanks Joseleen for sharing this. 

KepCorp - Profit taking

Noble and Wilmar - 上有埋伏, 下有追兵

These 2 counters are very interesting. Their incline trending got stuck over the past few days. 

Noble:-
Resistant at 1.115 and support at 1.08 base on incline.  Divergence formed.  Yesterday one long black candle stick.  Traders selling, investor still holding on.

Wilmar:-
Resistant at 3.64 and support 3.53 base on incline.  Divergence formed.  Shooting star appeared.  Traders took profit.  However, investors were still holding on, therefore some traders went in and tried to push the price up. 

These 2 counters are now at a tight range.  Would it fall into box trending, break up or break down? Look out for the next few days candle stick/price movement. 

 

China markets fell after regulators issued new rules for reforming the country's share sales market

Shenzen stock index fell 4% and Shanghai stock index dropped 1%.  China stock markets fell on Monday after the regulators issued new rules for reforming the country's share sale market over the weekend. 

 

People fears that the new listings might not leave enough cash in the market.  The rules are likely to see listings resume next year, ending a freeze that has lasted more than a year.

I look at it, the rules should be positive to the market especially in the long run.  An example of the key issues addressed by the new rules are "limiting the government's influence over the pricing of share offers and boosting transparency".  The securities regulator "would only be responsible to decide whether companies fulfil the rules". The "values and risks would be for investors and the market to judge".

 

US and Europe economics have lot of problems over the past few years.  Where else China GDP has been above 7% and it even overtake Japan to become the second larger economically country.  But if we look at the China stock market as compare to the US, German, France, London and Japan, they are far apart. 

 

The freeze on China IPO over the past one and the year has affected the market from advancing.  The investment fund in China has gone into property.  That's the reason why, no matter what cooling measured the China government implemented, the property price still continue to rise.  Thirdly, China stock market maturity.  Outsider is not allow to buy China share in the China stock market.  If it does, thing will be different. 

 

There are so many companies in China on queue, waiting for listing.  It is important on how China Securities Regulatory Commission (CSRC) control, carry out, review, conduct checks to ensure that information provided by the firms looking to list was full and accurate, transparent.....to approved as part of reforming the country's stock market listing system.supervision to the issuance process.  This is something that we need to watch out.