Morning Highlights

Yesterday’s Nonfarm Payroll Report Released accounts for a hefty market impact that leads to Dow Jones negative 223 points.

Asian Shares falls on US Data at the Open, but as of now, in particular to STI, the market has started to recover.

 

According to our indicative stop loss given yesterday, Yanlord should have been been stopped out at 2.46. However, due to our experience, we have already withdrawn out stop loss prior to market open due the overnight Dow’s news.

 

**It is advisable for all traders to withdraw their stop loss prior to market open if there is any big volatility at the US market. Chances are, our market will react to the drop initially but gradually recover from the over-reaction after settling. This is further reinforced by that the fact that Yanlord has recovered to 2.50 after 10:00, which is 1 spread above yesterday’s last done. 

 

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 (Singapore):

 

Symbol

Name

Entry

SL

TSL

TP

Remarks

1

CTDM

City Development Ltd

8.4

8.33

 

8.47

 

 

Afternoon Highlights

Good news, our position for City Development is a tidy profit of 7 spreads according to the take profit level as stated in the morning.

 

Our Focus in the Afternoon is on Mid Cap Stocks, in particular to Yanlord & SATs Service.

 

Back to the STI, we dropped 36.13 points from today’s open. Currently, we are up by 18.63 points, recovering from the Dow’s effect. However, more confirmations are needed to affirm the recovery. Hence, we deduce market as going sideways.

 

In addition, most stocks are trading below the Moving Averages with no clear trends. Thus, it would be advisable for traders to stay on the sidelines till further notice.

 

With reference to our open position – Yanlord, we can see that it is very resilient. Based on the daily chart, the moving averages are still trending upwards in a nice motion. Here’s a snapshot of Yanlord chart

 

An Overview: 

The Market has dropped consecutively for 5 days since 12 June 2009 to 18 June 2009. If based on the pervious performance, the market will have a tendency to continue its downtrend.

 

However, it seems that we are not facing such a situation at the present moment. Instead, the pullback since 23 June 2009 to 26 June 2009 is so severe; yet, the market has recovered 120.66points from the (23rd June) low of 2211.81.

 

We deduce that we are sort of in the mid-way. Hence, if the market continues to go lower next week, the market should stand a higher chance to break 2211.81, and form a downtrend.