Morning Highlights:
Monday’s STI gapped down right after SGX opens.
The STI broke through 2355.20 within the first 10 minutes but recovered shortly above that point. Based on the hourly chart, we see that STI had broken 2360.61 and is trading below this point for the time being. STI has no clear direction on the hourly chart.
Investors should be caution when taking positions as market is quite choppy and still fighting for a direction.
Housing data will be released on Tuesday at 08:30 Eastern Time.
However, this week’s debates will be more on inflation as oil price has been rocketing up. The data should show higher inflation due to a rise in energy prices, but mild core inflation*.
* Core Inflation is thought to be an indicator of underlying long-term inflation.
* Core inflation eliminates products that can have temporary price shocks because these shocks can diverge from the overall trend of inflation and give a false measure of inflation.
We have yet to identity any profitable sectors as our primary focus for now. Nonetheless, we have selected a few potential stocks in play.
Our Focus for today is on Blue Chips
Our position is to go short selling. We are waiting for the setup as mentioned in the Quick Picks as according to the morning charting
Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume.
Bullish Stocks:
|
|
Name |
Entry |
SL |
TSL |
TP |
Remarks |
|
|
1 |
Olam |
Olam International Ltd |
|
|
|
|
Unusual activity despite market weakness. Look Out! Wait for 2.37 to break. |
Bearish Stocks:
|
|
Symbol |
Name |
Entry |
SL |
TSL |
TP |
Remarks |
|
1 |
CTDM |
City Development Limited |
9.17 |
9.56 |
|
8.78 |
|
|
2 |
KPLM |
Keppel Corp Limited |
7.05 |
7.15 |
7.04 |
6.95 |
|
|
3 |
SGX |
Singapore Exchange Limited |
7.49 |
7.83 |
7.71 |
7.15 |
Once SGX clears the low of 7.50, move SL to TSL. |
|
4 |
OCBC |
Oversea-Chinese Banking Corp |
7.10 |
7.40 |
7.16 |
6.8 |
|
Shift the SL to TSL accordingly. We will update the post in real time. Stay tune!
Watch out for the next support at 2314.62 on STI
********************************************************************
Afternoon Highlights:
Market rebound from the low of 2332.13 and climb back to 2341.70. Presently, the STI fails to hold at 2341.70. We will have to wait for more confirmations.
For those who have missed the entry price, here the 2nd round of setup opportunities.
Bearish Stocks:
|
|
Symbol |
Name |
Entry |
SL |
TSL |
TP |
Remarks |
|
1 |
SGX |
Singapore Exchange Limited |
7.41 |
7.76 |
7.48 |
7.15 |
Once SGX clears the low of 7.50, move SL to TSL. |
|
2 |
KPLM |
Keppel Corp Limited |
6.92 |
7.23 |
6.99 |
6.95 |
|
|
3 |
WLIL |
Wilmar International Ltd |
4.87 |
5.11 |
|
4.63 |
|
Other Stocks to take note:
- City Development is testing the low of 9.06, we’ll wait for further confirmations to sniff out 2nd setup opportunity
- DBS test the low at 12.10
“STI plummeted at 3.30pm, creating the lowest point of 2328.77”
In Summary,
The Strait Times Index continued with the whipsaw. It could be partly due to the news that G8 looks to end the stimulus package.
On 30 minute timeframe, Moving Averages on most shares are pointing downwards
On 60 minute timeframe, Moving Averages are still crossing with no direction
For Aggressive Traders, we are definitely calling a short term downward biased
For Conservative Individual, you might want to wait for the daily chart to turn down before you decide to short the market.
Before we end for the day,
There is a high possibility that the STI might gap down at 2314.62 for tomorrow’s open.
If the market does perform the gap down, traders should cover their short positions and do not go long after you closed your positions!!
