Like a pilot flying in a fog, he needs to trust his instruments. For traders, we need to trust our signal.

let’s turn to our charts….

Straits Times Index closed at 3,324.39 points, down 26.11 for the week.

I keep repeating: a-trend-in-force-will-continue-until-proven-reversed. Several positive signs remain in effect: the Impulse system is green for both weekly and daily time frames.

Daily MACD histogram is ticking up but CADI is still struggling.

Turning to the weekly chart is a bit shaky with potential divergences but the daily chart looking strong as MACD is ticking up.

With that, I would expect a bit more ragged rally going forward. At the same time I urge you to protect profits on long position with stops.

I will be looking at some STI component stocks as some counters looking attractive.

Best wishes,

Divergence Trader

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.

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