STI has fallen 125 points from the high, should you buy now? (29 Apr 16)

Some of you have missed STI’s sharp 432 points, or 17% rally from the intraday low of 2,532 on 12 Feb 2016 to 2,964 on 21 Apr 2016. Chart 1: STI’s phenomenal rise since 12 Feb 2016 Source: CIMB complimentary chart as of 29 Apr 2016   Usual reasons of missing this rally are: a) Fear that market may go down further when it hit 2,532 on 12 Feb. That was the 3rd time it tested 2,529 – 2,532 level; b) No time to monitor the market but do not wish to place some limit orders due to point a […]

Ernest’s market outlook (22 Apr 16)

Dear readers, Despite the mostly disappointing results, S&P500 is about 2% below its all-time high. Will S&P500 continue to march higher and breach its all-time high of 2,135? Read on to find out more.   S&P500 Index Just to recap what I have mentioned on 8 Apr 2016 (see here), I wrote “S&P500 may consolidate between 1,980 – 2,080 with a downward bias. A break below 1,980 on a sustained basis negates the bullish tinge in the chart.” –> S&P500 breached 2,080 on 18 Apr 2016 after consolidating and touched an intraday high of 2,111 before closing at 2,092. Based […]

Sunningdale near all-time over bought level (12 Apr 16)

Sunningdale has appreciated approximately 59% from $0.810 on 19 Feb 2016 to $1.290 on 12 Apr 2016 which is more than a five-year high price level. Based on Chart 1 below, Sunningdale seems to have formed a spinning top on 12 Apr 2016. This may indicate indecision / weakness among the bulls after an extended advance. RSI is at, or near an all-time overbought level at 89.5. MACD (being slower to react) is near multi-year overbought levels. ADX is at typically unsustainable high levels above 80. In view of the above, Sunningdale may consolidate its recent hefty gains in the […]

Ernest’s market outlook (8 Apr 16)

Dear readers, As I correctly pointed out on 21 Mar, Mon 907am to my clients via email to alert them to consider taking profit on our local banks, the three local banks have fallen -3.9% – 6.4%, vis-à-vis a 3.4% drop in the STI. It is noteworthy that 18 Mar close was coincidentally a recent high for STI. For the past two weeks despite the lackluster market, it has been an exciting and profitable fortnight for me as I have increased from 0% invested on 24 Mar 2016 to 90+% invested and back to 0% invested as of 8 Apr. […]

5 reasons why stock investing is so difficult to start (6 Apr 16)

5 reasons why stock investing is so difficult to start (Guest post) You have probably heard stories of people who’ve made investments. These people range from veteran institutional investors like Warren Buffet, Carl Icahn to associates, friends and little known hearsays. The similarity is, all of them have made some sort of money. But what stops everyone from doing so? You’re probably reasoning that the big boys can make money because they already have the capital, skills and maybe some insider info. Isn’t it obvious enough? True only to a certain extent. Let’s break down the 5 actual reasons why […]

Innovalues – strong price action outperforms local market (1 Apr 2016)

Innovalues has been on a tear lately. It has risen for five out of six trading days, up 15% since $0.780 on 24 Mar 16 with increasing volume to close at $0.900. For the past week, Innovalues’ daily volume has consistently exceeded its average 30D and 100D volume amounting to 1.2m and 0.88m shares respectively. 21D exponential moving average (“EMA”) has pulled apart from 50D EMA after converging which is a positive sign. All its EMAs are rising, indicative of a good uptrend. ADX has started to climb from 9.8 on 24 Mar 2016 to close at 23.7 on 1 […]

My first interview on Mediacorp Ch 8, 9am Morning Express 晨光第一线 (1 Apr 16)

Dear all, I am pleased to say that I have scored another “1st” in my TV coverage. Although it is not my 1st time to appear on TV, it is my 1st time to appear on Mediacorp Ch 8, 9am, Morning Express 晨光第一线 on 1 Apr 2016. Readers who wish to know my market outlook on Morning Express 晨光第一线 can refer to my “Media Features” page.