STI must stay above 2678 today. Hang Seng Futures must stay above 19358 for recovery
Posted by admin in Commodities, Forex Analysis, Futures Pick, Market Analysis, Stock PickGood Morning,
US Stocks erased most losses by the close Tuesday night, with the Dow ending down just 22 points after having fallen close to 300 points earlier in the session, as worries about the global economy were tempered. In the first hour of trading the Dow fell as much as 292 points to 9,774.48, the lowest level since Nov. 4.
US Stocks had been hit hard through the early afternoon (US timing), but began to recover late in the session, with investors nibbling at bank and select technology and consumer issues. Bank stocks bounced after comments from Barney Frank that one of the more intensely disliked components of the Wall Street reform proposal could end up being cut from the final bill.
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When the STI and regional markets were selling off in the afternoon session (yesterday), the Dow Futures was down 220points or 2%. So inclusive of the day before yesterday’s Dow, of 1% downside, the total damage was 3% and thats why regional asia stock markets were down around 3% yesterday too. But with this recovery by the Dow last night, even though the Dow is still negative 22points, but it will definitely led the asia stock market to a higher opening in the morning.
But the question is whether the market will go up after the it gapped up?
Based on our V3Go system and indicators, most likely, the answer is no.
If we are correct, we will see all regional asia markets opening higher, go up a little and then come down instead.
Key things to watch is the S&P Futures, Dollaryen, Euro and the SIMSCI. If the stated markets are trading below the OP of today then most likely we are going to see selling activity once again. This morning, most marekt only gap up 1 – 1.5% as compared to their 3% sell off. If this is the case, that mean traders are really not vesting on the long side of the market for the time being, then its pointless for us to go into the market now.
Once Hang Seng Future opens at 0945hr and it fail to stay above Opening Price by 1030hr and trading below 19000 by then, then its quite clear that we are going to see more selling.
For today, we are shorting the SIMSCI, HK, S&P and TWI Future based on DIFF and OP Rule.
We apologize for our Genting call yesterday, our cut loss level was triggered at 92cents and we were stopped out there. Although it is trading at 94cents now, no regrets. We followed our rule and we are glad that we only lost 2.5cents on this trade and this is the only counter in the top 50active list that is down 0.5% while the rest is down 4-11% on average.
May everyone prosper by shorting in the market or staying out which is not bad choice too. :-)
Kelvin Han
aka Trend Master
V3Go Originator
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