I love this time of a weekend - Sunday afternoon, activities quieting down.

I am doing homework, anticipating the opening of tomorrow market, getting ready to zoom in and trade on Monday.

PS. Readers are invited for a Christmas gathering on 13th Dec. Time is 10 am – 1pm. We will discuss about 2015 Market outlook and how I handle my trades.

Cost: Gathering is free (small tea break will be served). For details please click the link.

Last week was a quiet week for Straits Times Index.

And now, let’s turn to our charts…….

Strait Times index closed at 3,350 points, up 5.18 points for the week.

Looking at the weekly & daily chart of STI, I can see several messages.

1) We are at the resistance level, 3,350

2) The weekly Impulse system is green (when the color is green, I can buy or stay line. No Short sell). We are still in uptrend.

3) Weekly CADI index ticked down. The overall market breadth is not very healthy.

PS if you want to know about CADI, please follow this link.

4) Daily chart MACD histogram is ticking down.

I am a caution bull for Singapore market.

Charts speak in a silent language, relying on an interpreter to vocalize what they're saying. Sometimes an interpreter helps, but there is always a risk of him going off the rails.

That's why, whatever analytic decisions you make, they must be backed up by solid risk management.

Be cautious, be nimble, and be sure to protect your positions with hard - stops.

Best wishes for the week ahead.

Talk to you soon,

Divergence Trader

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