Fears that Europe's banking problems and North Korea's threats of military action against South Korea could derail the economic recovery

Dow Jones managed to claw back from -300 points to -20points yesterday despite the mentioned news. However, Market volatility (VIX) has hit a high of 43.64 before close at 34.61, which means Hell broke loose in all markets very similar to the sub-prime crisis, where choppy trades and waves of news surround the Wall street.

Bearish in STI as it has been trading below 200 MA. today's rebound is expected since the index was oversold at -3% yesterday. Long term investors will bargain hunt due to the recent strong earning and economic results. The spate of events did not deter them from buying, especially shipping counters when Baltic Dry Index was up 6.7% today, casting a positive outlook in the forthcoming months.

Trade with Care.

Pennant formation for STI

STI index has broke the support level prompting another selldown from investors. Thus it has formed the pennant or flag pattern which is a continued downtrend movement if STI trades below 2775. As of 1130am, it was trading at 2771...

Short term Bearish.. Trade with EXTREME CARE and sniff out good bargains for long term.

Believe your believes, Doubt your Doubts

STI 18 May 10

US STOCKS MAKE A COMEBACK - END POSITIVE (CNBC)

The euro was around $1.24 against the dollar, after earlier hitting a four-year low against the U.S. currency.

DOW JONES - "What happens late in the trading day is the professionals come in and figure out what to do based on where the market is. And to my eye, the professionals came in and said, 'This market's on sale. And the economy is not going to the wrecker again, and so it's time to buy," Stuart Schweitzer, global markets strategist at JPMorgan Private Bank, said on CNBC - DO YOU BUY???

It has been a roller-coaster ride for investors from the sell-down yesterday and prices are really attractive as bluechips are trading at their support.

The closing price for STI will determine the formation of chart pattern - Pennant or double bottom?? over the next few days to analyse short term outlook.


Watch for the key levels for STI as posted earlier.

Trade with care.

STI testing first resistance of 2856 - Reversal?

As of 250pm, STI has reached intraday peak of 2855 with bluechips leading the pack. Waves of buying continues as European markets are opening.

Reversal could only be possible if it could hold above this level till end of the day. Bargain hunting begins.

Trade with care. Do not catch a falling knife or "bull trapped".

EU agrees bumper eurozone aid deal - Uptrend?

STI gapped up in the morning with the news being announced.

1) Euro has went up against the US dollar signalling the positive sentiments in the European Markets later.
2) Futures are up.
3) Dow Jones may recover from Friday's losses

As such, the upside movement may continue signalling a reversal. But, watch the key levels of STI as posted earlier.

The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.
George Soros
Buy st support. Sell at resistance

STI 07 May

STI rebounded from -60 to -24 in the morning. Licking it's wounds from the fanatic sell down.

Sentiments still bearish but it will rebound from today's low to the 2856 resistance for the next 2 days before continuing the downtrend.

Volatility is at it's peak and be cautious on the reversal if you have loaded today. Lower your expectations and book your profit once you know it's going down.

Trade with EXTREME CARE and TRADE TO WIN..

The Boy who cried Wolf the fourth time..

STI has traded below three key support levels from the recent peak of 3032 with HIGH VOLUME.

1) 2949
2) 2897
3) 2856 - (6 May closing price 2839.65)
Moving average 14 & 25 has a crossover as of 5 May. (downtrend) and STI is trading dangerously below 50 MA line.

All these happened within 4 market days with 145 points loss from the 30th April peak of 2984. Unbelievable.

As I have said, stay away from the Bull-Trap and I'm expecting a rebound as soon as these 2 days from the panic selling and then continues it's downslide. Let's observe the movement and will keep you posted.

The boy who cried wolf the fourth time.. what will you do? It may be a BULL afterall.

Nevertheless, opportunities lurk in the deep waters where we could load them at a bargain. Will be updating soon

Bull Trap

Investopedia explains Bull Trap
A bull trap often causes some investors to buy the stock, but because the stock continues to decline after the initial signal, those who bought in are "trapped" in a bad investment.

STI has retraced 3% for the past 2 days and Europe is still declining on the fear of Greece bailout. Many counters including the index have declined below their support level (2957 STI). STI further reacted to the US when Dow gave away 200 points in the early hours of trading but rebounded in the afternoon 2 - 3pm due to Shanghai's positive performance.. Waves of buying occured during this period and finally surrendered at the end of the day.. Are you bull-trapped?

The boy who cried wolf for the third time is real for now.

Stay away as counters are testing their critical support levels using TA.. When dividends and earnings reports are due to over in May, what's next? Buy or short? When?

Will be updating soon.