U.S & European stocks logged their largest weekly falls for 2023. What’s next for the equity markets? (26 Feb 23)

Dear all With reference to my writeup published on 30 Jan 2023 (click HERE), where I mentioned I would be cautious in the overall markets, especially after a sharp run up, US stocks have dropped consecutively for the in the past three weeks. Dow has fallen consecutively for the past three weeks and logged its sharpest 1,010 points or 3.0% last week.   So, what is next for our markets? Do we buy, hold or sell? Just to highlight, the below is a sample of a brief stock alert or / and observation which I typically send to my clients […]

STI at 3,051 – Presents some attractive opportunities (3 Oct 2021)

Dear all With reference to my market outlook published on National Day (see HERE), both STI and Hang Seng have hit their highs on 10 Aug and 11 Aug respectively before dipping. Based on Table 1 below, S&P500, Hang Seng and STI have fallen 1.8%, 6.1% and 4.0% respectively since my writeup. Table 1: Indices’ performance since my last writeup Source: Ernest’s compilations Amid the recent weakness, you may be wondering whether it is a good time to accumulate on weakness. Before we get to this, let’s take a look at the indices’ charts.   S&P500 closed 4,357 Based on […]

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 […]

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 […]