2976 is the LEVEL to watch for the STI today… Closing below it will invite more SELLING
Posted by admin in Events and Advertisements, Futures Pick, Market Analysis, Stock PickGood Morning,
Yesterday during our Futures Trade ‘Live’ Session, we have a pretty rough ride as the market was swaying between the Bulls and the Bear. We made pretty good money on our NIKKEI shorts but was stopped out in our Taiwan and SIMSCI trades but made back the losses via our Pound long trade. Overall, ended positive but would be looking foward to win more today as we expect a Directional Movement today based on our V3Go System.
Based on our V3Go Indicator, it is showing Negative Signals ; Downside Sparrow Formation and Dipping DIFF. Thus we are looking at the market to SELL than buy today. 2976 is a critical level to watch for the STI today as that’s the short term support level. Should the STI close below it again, then we are quite certain that we should see another round of SELLING in the market soon.
For those people who are into Technical Analysis and Price Action, should know that the meat on the upside seem limited the RISK vs Reward Curve have increased and the Price Action Gap haven shorten thus all these signs = there should be a Correctional Move very soon.
We are telling our grads not to get too involved in the Long side while go for Short instead. We are also enticing our grads to get more involve in Futures Trading so that they can use it to hedge their Long term stocks positions incase the market really fall.
Honestly, in our opinion, with the Dow keep staying above the 11,000 mark while the rest of the Indicies not doing the same; really shows that the Asian markets are due for a correctional breather. We suspect that once the US companies completes their 1Q earning reports, the selling will begin.
Do remember, although there are 123 US companies reporting but most of them are expected numbers (that’s why many shares went up over the last 2weeks on expectation) BUT most analysts are giving very safe estimation this round therefore, most likely, the market will SELL on NEWS than Buy on FACTS…
But of course, end of the day, we may be wrong but we rather play safe than sorry. We will continue to encourage shorting than going long for the time being UNTIL we see a change of momentum again.
Till then, enjoy yourself in the market and wait for the next blog update.
V3Go Stock Watch
(1) Genting – Continue to wait. This stock most likely will re-test 85cents again
(2) CPO stocks, like Indo, SAR, Noble, Olam are still short candidates whenever opportunities arises
(3) Local Banks = Wait for the correctional movement to come first before going long.
Disclaimer as usual.
Cheers!
V3Go Team
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