Table 2_Most oversold stocks by RSI

Hang Seng & STI have fallen close to 2,900 & 250 points in one month! (28 May 19)

Dear readers, Asian markets have fallen quite a bit in the past one month. For example, Hang Seng has fallen close to 2,900 points since touching a high of 30,280 on 15 Apr to trade 27,391 which is the low last seen in January. STI has fallen almost 250 points from an intraday high of 3,415 on 29 Apr to close 3,165 today. Looking at the indices may be deceiving as many shares have fallen a lot. For example, based on Table 1 below, most stocks have fallen at least 10%, with Sembmarine tumbling almost 17% in less than a […]


Ernest’s market outlook (9 Dec 16)

Dear readers, STI has hit highs last seen on Apr and Jul 2016, powered by our local banks. Can this sustain? Read on for more.   S&P500 Index Just to recap what I have mentioned on 25 Nov 2016 (see HERE), I wrote “S&P500 is on a clear uptrend. All the exponential moving averages (“EMAs”) are rising with 21D EMA forming golden cross with 50D EMA on 10 Nov 2016. Amid positive placed directional indicators (“DIs”), ADX continues to move higher from 28 on 11 Nov 2016 to 31 on 25 Nov 2016. It is noteworthy that indicators such as […]


Ernest’s market outlook (23 Sep 16)

Dear readers, S&P500 reached my measured technical target of 2,120 and rebounded. STI continues to be trapped in a range. What’s next?   S&P500 Index Just to recap what I have mentioned on 9 Sep 2016 (see HERE), I wrote “The break below 2,157 on 9 Sep 2016 points to an eventual measured technical target of around 2,120. With this sharp plunge, RSI has declined from 59 on 19 Aug 2016 to around 32 on 9 Sep 2016. It is noteworthy that since Aug 2015, S&P500 typically staged a rebound when RSI reached around 27 – 32. Amid the sharp […]


Ernest’s market outlook (9 Sep 16)

Dear readers, S&P500 finally broke the (one month plus) tight trading range 2,157 – 2,194 with a 2.5% drop yesterday. What’s next? Read on for more.   S&P500 Index Just to recap what I have mentioned on 19 Aug 2016 (see HERE), I wrote “S&P500’s EMAs continue to move higher with a constant degree of separation which is a positive development. However, I am (increasingly) wary of two main factors namely, A) ADX continues to decline from 17.1 on 5 Aug 2016 to 15.9 on 19 Aug 2016, indicative of a lack of trend. B) Indicators such as MACD, MFI […]

S&P500 chart as of 10 Jun 16

Ernest’s market outlook (10 Jun 16)

Dear readers, Two weeks ago, I mentioned that I have increased my stock holding from 36% to 80% by accumulating on one stock on weakness. I have since taken profit on this single largest stock holding and have pared my stake in another stock. Besides the stock sales, I have increased my stake in another stock on weakness. All in, my percentage invested was reduced from 80% to approximately 31%. I am unlikely to exceed 50% invested in the next two weeks, unless I spot some extremely attractive opportunities as I remain cautious on the general market. Read on to […]