Did You Trade

Good Morning,

Very good to see the Dow rising back up above the 10,000 mark as the recovery of the Euro and unexpected strong Chinese Export numbers seem to give the market the reasons to buy as many traders are citing that some of the US stocks are oversold. BP jumped up more than 10% after hitting a 13mths low.

Energy shares led the charges (Rem, I shared with many before, that Dow and the US Crude have an interesting inter-relationship between them) and with the Euro recovery on ECB decision not to change monetary policy, calmed the investors. Here is the summation of what led to the Dow’s 273points upside.

Comments from the Floor:

“Trichet is indicating that the European economy will not falter and will not be problematic to the global economic recovery,” said Peter Cardillo, chief market economist at Avalon Partners. The ECB president’s comments helped push the euro to hold above $1.20 for the first time in a week, and as it spiked as high as 1.4% to stand at $1.2142.

“We’re seeing the euro stabilize, and while that doesn’t mean the crisis is over, there’s less fear in the market,” Cardillo said. “The easing of that fear is what’s responsible for the stampede.”

Goldman Sach Trouble Not Over Yet…
While most bank shares were up with the broader market, Goldman Sachs’ (GS, Fortune 500) stock plunged more than 3% to a new 52-week low as investors digested reports that the Securities and Exchange Commission is investigating a mortgage investment Goldman bundled and sold in 2006

SEC New Ruling
“Flash crash” fix: The SEC approved new rules Thursday that will halt trading uniformly across all U.S. markets for stocks experiencing 10% price swings within a five-minute period to prevent a repeat of last month’s “flash crash.”

Winners vs Losers Ratio
Market breadth: Market breadth was positive. On the New York Stock Exchange, winners beat losers seven to one on volume of 1.3 billion shares. On the Nasdaq, advancers topped decliners 11 to two on volume of 2.1 billion shares.

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V3Go Chief Trainer, Kelvin’s Personal View

We were stopped out on the SIMSCI yesterday as the market rallied up in the afternoon on seemingly expectation of the Dow upside. The STI led the charge, up almost 1.6% while the rest of the markets were up much lesser. No problem with that as all our grads know what and where were the risk and it was a good practise that we got ourself stopped out as the current price is much higher than where we shorted and we can re-short the market again once we see opportunity.

For those non-V3Go Grads who followed our call, do accept our apology for the call. We don’t believe in Hindsight and of course, we have the policy to admit calls that led to losses too. We don’t believe in just sharing the good but also the bad.

For today, we are looking at the STI to see IF it cross above 2806 successfully… as there is a resistance there based on one of our V3Go technique, known as TAOS. As I am writing, the STI opened at 2803 and hit a high of 2806 and based on our technique, if the market fail to stay above it, we are calling for a SELL in the market today. We mentioned to the grads to go short on SIMSCI if it is below OP and STI stays below 2806. If it goes above by near closing, we will stop out our position. If not, we will hold it as that could be the market top for now.

For stocks wise, nothing caught my eye yet thus nothing much to share.

For HK Future, the support will be around 19810-19820 level. If the market fail to stay above it.. do expect profit taking to set in. 

For Euro, unless I see the Euro trading above 1.2173 convincingly, if not, I am looking forward to short it on the recent rally. 1.2040 is the key support for today. Currently, it is trading at 1.2120.

With that, I end my market preview for this morning. Later in the day, I will return to share more about the markets. May everyone have a fruitful and prosperous day ahead!

Cheers!

Disclaimer applied

Kelvin Han
V3Go Originator

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This entry was posted on Friday, June 11th, 2010 at 9:59 AM and is filed under Events and Advertisements, Forex Analysis, Futures Pick, Market Analysis, Stock Pick. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.