Bearish Stock

STI continue to dive lower in the past week, with most notable, Friday gap down and closed 91.33 points or 3.23% lower to 2733.63. The volume lower but remain high level due to investors pull out from market without any further hesitation to protect their position. STI ended the week with 116.96 points or 4.1% lower.

Most major indicators suggested that more downside to come. The past week low volume during gaining and turn high volume during sell down also confirm the market heading south. Moving average also suggested no matter short, mid, or long term, STI is bearish.

The list beside is a list of Bearish stock for mid term trading, can consider to short if it break below prior day(friday) low. If you are not familiar on shorting using CFD, can consider to go slow first, enter Short position with 20-30% of your capital first to try out. Remember your stoploss!

Death Cross

Looking at the big picture again. STI has technically stepped into the Bear zone, STI below 200ma, making lower low and lower high since early this year. If you have seen the Index of other market, most market already have their the death cross signal. (50ma cross 200ma).

Short term wise we are having a rebound, not sure how long this will last, but it will be good to reduce your long position when market is on its way up. Again, always remember your stop loss.

http://www.businessinsider.com/death-cross-now-in-play-2011-8

Falling knife

As mentioned on our daily email STI has fallen below the major support 2920, before we go above this level we should be cautious and wait for reversal signal! Don't anyhow buy lower and lower, averaging down is for long term investor who can hold for few years to do(using cash, not CFD), not for the common people who have only 1 set of fund. Again, always apply stoploss.

For market to turn there are a few signs to note:

1) The decline in index need to slow down, not falling by 100 points a day for Dow Jones. That is the first sign of a turning point.

2) A decline in volume on down days. This is a sign that Bear players are diminishing.

3) 3 consecutive green daily candles. This is a sign of return in confidence. Blue chip up 4 out of 5 day.

Market Outlook

I called the right direction at the right time again! If u followed previous post, it was the day JUST before STI hit the channel resistance, i called to take some profit and today STI hit the bottom and stay there.. this is a good opportunity to buy when everyone is Panic selling! Please always apply your stoploss.

Can look at a few strong stock which i mention before e.g Biosensor, Sembcorp.. Q&M, UOL.

If you have follow my post on Coscocorp .. probably is good time to take some profit, because short term seems to have some rebound. My view~ If you like my posting, please help me to share it out to your friends, thank you for reading!

Market Outlook

I just realise that I spotted the lowest point on 20 june posting when STI is at ard 3000 points! Last week STI just hit 3200, again, if you have followed you should be making money by now! So what is the current outlook for August? From the chart we can see that market is generally uptrending (Higher high, higher low, STI above 50ma and 200ma), however it is hitting Resistance at ard 3210. So Short-term beware of profit taking, mid term wait for pull back. STI support at 3140 follow by 3080.

Many investor are worried right now regarding the US debt ceiling problem, if the debt ceiling is not raise on 2 Aug it might trigger a Panic Selling around the world.. Hence i suggest not to hold too many stock with you right now, can consider to sell off those none performing stock in your portfolio. Wait for market to bottom and buy at Support level!

Market will be quite interesting if we break the resistance 3210.. Get ready your bullets..