Table 1_Top five stocks with the highest total potential return 10 Nov 17

Ernest’s market opinion (10 Nov 17)

Dear all STI has closed at 3,420, in line with my view that STI’s chart continues to be bullish (refer to my technical write-up on STI HERE), despite the elevated RSI.   1. Equities – still favour over bonds over 3-5 year time frame but… Personally, notwithstanding the market rally, I believe that over the long term, equities are still likely to outperform bonds and cash. Having said that, I am not telling all my clients to plough everything into stocks NOW, given that in the near term, there may not be significant catalysts to push the market higher by […]

Chart 1 Hatten's chart as of 3 Nov 17

2 companies to watch out as markets reach new highs (3 Nov 17)

Based on yesterday’s close, Nasdaq clocked a 63rd record close for 2017 and overtook the previous 62 record closes for 1980! S&P500, Nasdaq and Dow registered their 25th record close for 2017 simultaneously, matching the record established in 1995. On our local front, STI approaches a more than two year high. 2017 has not ended yet. For those investors who have not invested much, are they too late to the party? Are there still stocks with scope for potential upside? Personally, I believe that there are two companies, namely Hatten Land (“Hatten”) and GSS Energy (“GSS”) with interesting charts and […]

STI chart as of 27 Oct 17

Ernest’s market opinion (27 Oct 17)

Dear all STI has closed at 3,386, a fresh 29-month high. Some of you who have been less than 30% invested in their portfolios and have not added more exposure in their equities portfolio last month are wondering whether you have missed out of the rally. Should you continue to chase this? Read on for more.   S&P500 last closed 2,581 S&P500 is on a strong uptrend with all the exponential moving average (“EMA”) trending higher. ADX closed at 29.3, amid positively placed DIs, indicative of a trend. RSI closed at 70.7. This is not extremely overbought, relative to past […]

S&P500 chart as of 18 Aug 17

Ernest’s market opinion (18 Aug 17)

Dear all Our STI has broken a one-month trading range of around 3,288 – 3,348. Where will STI and the other indices go from here?   S&P500 last closed 2,426 Based on Chart 1 below, although 20D exponential moving average (“EMA”) is trending lower, the other EMAs, namely 50D, 100D and 200D EMA are still trending up. RSI closed at 37.2. Since 7 Nov 2016, the lowest RSI was around 35.9 on 10 Apr 2017. Although the directional indicators (“DIs”) are negatively placed, ADX is still at a low 12.2 which is indicative of a trendless market. My personal view […]

STI chart as of 24 Mar 17

Ernest’s market outlook (24 Mar 17)

Dear all, After 109 trading days, S&P500 finally staged a 1% drop on 21 Mar 2017. Is this the start of a correction? Let’s take a look at the charts.   S&P500 Just to recap what I have mentioned on 10 Mar 2017 (see HERE), I wrote “All the EMAs are rising steadily. Since 8 Nov 2016, S&P500 has not traded below its 20D EMA for more than one trading session. Amid positively placed directional indicators (“DIs”), ADX has risen from 34 on 24 Feb 2017 to 38 on 10 Mar 2017, indicative of a trend. RSI has weakened from […]

STI chart as of 10 Mar 17

Ernest’s market outlook (10 Mar 17)

Dear all, S&P500 has dropped 28 points, or 1.2% from its intraday high of 2,401 on 1 Mar 2017. Is a correction coming?   S&P500 Just to recap what I have mentioned on 24 Feb 2017 (see HERE), I wrote “S&P500 continues to be entrenched in an uptrend, as evidenced by its rising exponential moving averages (“EMAs”). ADX started to rise from 18 on 10 Feb 2017 to 34 on 24 Feb 2017, indicative of a trend. RSI closed at 80 on 24 Feb 2017. It is noteworthy that RSI only crosses above 80 on a couple of trading sessions […]

STI chart as of 24 Feb 17

Ernest’s market outlook (24 Feb 17)

Dear all, Dow has hit daily highs for 11 consecutive sessions, its longest streak of records since 1987! What’s next for our markets?   S&P500 Just to recap what I have mentioned on 10 Feb 2017 (see HERE), I wrote “various indicators such as RSI, MACD, OBV and MFI continue to exhibit bearish divergences. ADX has slid from 41 in Dec 2016 to close at around 18 on 10 Feb 2017, which is indicative of a trendless market. RSI closed at 70 on 10 Feb 2017. Given the various chart indications, although S&P500 continues to be on an uptrend amid […]

STI chart as of 10 Feb 17

Ernest’s market outlook (10 Feb 17)

Dear all, Happy Chinese New Year 元宵节! The animal spirits seem to have descended on our Singapore market! Our STI is one of the best performing indices with a blistering 7.6% year to date return. Our FSTS ST Small Cap Index has returned 4.6% for the same period. Have you benefitted from this rally? What’s next for our markets?   S&P500 Just to recap what I have mentioned on 27 Jan 2017 (see HERE), I wrote “it is very worrying (more worrying than 13 Jan) that the various indicators such as RSI, MACD, OBV and MFI continue to exhibit bearish […]

Sunpower chart as of 8 Feb 17

Chart highlights on Midas, Sapphire, Sunpower, Terratech (9 Feb 17)

Dear readers, The animal spirits seem to have finally descended on our Singapore market! Our STI is one of the best performing indices with a blistering 6.4% year to date return. Our FSTS ST Small Cap Index has returned 3.8% year to date. I have highlighted four charts which (I feel) deserve attention. Do note the caveats below.   Midas With reference to my write-up on Midas dated 3 Feb 17 (click HERE), Midas’ inverse head and shoulders pattern seems to be confirmed with the decisive upside break above its 200D exponential moving average (“EMA”) and neckline of around $0.230 […]

Top 5 stocks sorted by highest RSI Bloomberg 27 Jan 17

Ernest’s market outlook (27 Jan 17)

Dear all, Happy Chinese New Year! How is your Rooster Year so far? S&P500 and STI reached near, or at my near-term resistances. What’s next?   S&P500 Just to recap what I have mentioned on 13 Jan 2017 (see HERE), I wrote “It is clear that S&P500 continues to on an uptrend amid rising EMAs. S&P500 closed at 2,275 on 13 Jan 2017. Since 8 Dec 2016, S&P500 has been consolidating between 2,238 – 2,278 and it seems to be staging an upside breakout. A sustained break above 2,278 / below 2,238 points to an eventual measured technical target 2,318 […]