Dear readers, S&P500 has jumped 5.2%, or 95 points from the intraday low of 1,812 on 20 Jan 2016 to close at 1,907 yesterday. Has market reached the bottom and is due for a V shape reversal, similar to Sep 2015? Read on to find out more…   S&P500 Index Just to recap what I have mentioned on 9 Jan 2016 (read here), I wrote “the chart has turned bearish due to the formation of death crosses with rising ADX. In addition, S&P500 has broken a long term uptrend established since Nov 2011” –> S&P500 continued to display its bearish […]

STI has dropped 25.9% from its intraday high of 3,550 on 16 Apr 2015 to 2,631 on 15 Jan 2016. FTSE ST Small Cap Index (“FSTS”) fell 24.7% from its intraday high of 510 on 16 Apr 2015 to 384 on 15 Jan 2016. Since the start of 2016, STI and FSTS have fallen 8.7% and 5.0% respectively. Other markets also suffered the same fate. U.S. faced the worst start of the year on record. Furthermore, with reference to Figure 1 below, U.S. is heading into the 4th consecutive quarterly drop in earnings. Figure 1: U.S. past quarterly projections and […]

Dear readers, Happy New Year! Hope your New Year has been great. It has not been so great for our markets. S&P500 registered its worst five-day slide amounting to 6%, the worst on record. China index dropped about 10% for the past one week and oil clocked a more than 10% drop this week. Is this Armageddon? What’s next for our markets? Read on to find out more…   S&P500 Index Just to recap what I have mentioned on 24 Dec 2015, I wrote “it seems bullish as the exponential moving averages (“EMAs”) seem to be pulling apart and trending […]

Dear all, Firstly, with reference to my write-up published on 12 Dec 2015 where Ying Li was trading at $0.152, there is a typo regarding the paragraph on the minimum trading price. The date should be 1st March 2016, instead of 1 Sep 2016. I have already amended the typo (see here for the write-up). Apologies for the typo. Secondly, on 28 Dec 2015 early afternoon, I have emailed my clients on the possible trading interest in Ying Li in the next few months. Ying Li was trading between $0.158 – 0.164 on 28 Dec and closed at $0.159. I […]

Dear readers, STI closed at 2,883 on 31 Dec 2015, down 14.3% year to date. As mentioned last week (see my market outlook here dated 28 Dec), STI is one of the worst performing developed markets, alongside with Greece. Furthermore, our SGD has weakened more than 6% against the USD. Thus, for funds whose base currency is denominated in USD, their returns are likely to be worse than 14% (assuming that they buy stocks which move in tandem with STI), after factoring the weakness in SGD.   STI may face challenging times in 1H2016 On a fundamental basis, STI may […]

Dear all, Since 8 Sep 2014, Sino Grandness (“SFGI”) has traded below its 200D exponential moving average (“EMA”). 14 months later, on 6 Nov 2015, it moved above its 200D EMA and stayed there for four trading days but slipped below it again. On 29 Dec 2015, it managed to breach its 200D EMA at $0.360 and closed above it. About 2.9m shares were transacted on that day which is more than a month’s high trading volume. This is a positive step. Secondly, 21D EMA has just formed golden crosses with 50D EMA and 100D EMA. ADX has moved from […]