Ernest Lim's investing blog

Unique insights into SGX small caps

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S&P500, Nasdaq and Russell 2000 hit records, time to switch to underperforming markets? (24 Aug 18)

el15

Dear all, S&P500, Nasdaq and Russell 2000 hit records last Friday with S&P500 closing at 2,875. However, our STI has dropped 11.8% after hitting a decade high of 3,642 on 2 May 2018. Hang Seng has also tumbled 17.4% after hitting a high of 33,484 on 29 Jan 2018. Is this the time to switch out of the U.S. markets and plough it back to STI and Hang Seng? This seems to be the question on most investors’ minds as I am also posed this question during a live interview on Money FM89.3 on last Thursday. Let’s take a closer […]

Ernest’s market outlook (23 Sep 16)

el15

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)

el15

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 (19 Aug 16)

el15

Dear readers, S&P500 has met my technical target of around 2,188. What’s next? Read on for more.   S&P500 Index Just to recap what I have mentioned on 5 Aug 2016 (see HERE), I wrote “Notwithstanding the continued bearish divergences indicated by MACD, RSI and the low ADX, my chart outlook continues to be the same as per two weeks ago. S&P500’s exponential moving averages (“EMAs”) continue to move higher with a constant degree of separation which is a positive development. The break above the trading range of 2,034 – 2,111 points to an eventual measured technical target 2,188. Strong […]

Ernest’s market outlook (22 Jul 16)

el15

Dear readers, Markets have continued to rally with the U.S indices clocking in a fourth consecutive weekly gain. Will the markets continue to defy gravity to reach new highs? Read on for more.   S&P500 Index Just to recap what I have mentioned on 8 Jul 2016 (see HERE), I wrote “Given the low ADX, bearish divergences between price and OBV, MACD and RSI, it is unlikely that S&P500 may stage a sustainable rally above an intraday all time high of 2,135 on 20 May 2015.” –> On the contrary, S&P500 breached 2,135 and stayed above the level for the […]