Wednesday and Thursday explosive rally punished the bears and turned the week positive. As I wrote in my review posted last week, I closed all my short positions and expecting a rebound for the week.

Bull markets tend to move up in a steady trend, while explosive rallies are more typical of short-covering, as panicked bears run for cover.

STI had gone down for 9 days in a row, the shorts must have grown complacent and Wednesday & Thursday rally punished them.

Most of the analysts or guru will ask: What is the market likely to do next? But I find it just as important to ask ” What is this market refusing to do?”

Markets run on a two-party systems. If bulls cannot win, it may well be the time to bet on bears, and if bears can't sink the market, then it could be time to bet on the bulls.

But I am very curious to see what happens after weak shorts are shaken out. Will the market continue to march to recover or will it deflate? Let's take a look at the charts...

STI Open: 3,326.37

STI High: 3,358.77

STI Low: 3,294.30

STI Close: 3,353.85

Price Change: + 20.18

Percentage Change: + 0.61%

Total Volume: 1.34 billion

Weekly Chart histogram is in downtrend and 3,350 has turned from support to resistance level.

Daily chart histogram is ticking up but STI couldn’t break thru 3,358 level. I am expecting a narrow-range for the week.

In the week ahead, Greece debt issues are likely to remain in focus and on 17th Jun, all eyes will be on Fed rate statement for a clear signal on when they could start to raise interest rates.

As I have said many times before, the most important factor to watch is not so much the news but the market's reaction for them.

There is no need to be a hero. Let's trade for the money and not for the challenge.

Staying on the sidelines is a legitimate position, as long as you closely monitor the market with a prepared action plan.

Be sure to review you plan and if necessary tighten your stops before the coming Fed meeting on Wednesday.

Best wishes,

Divergence Trader

PS, I have sold my Singtel on Friday since I always reiterate to grab profits quickly. Enter $4.15 and exit $4.21. I was late on the exit as the day high was $4.25.

But I was quite pleased as I followed my plan that I posted last week “nibbling on the long side (blue chips)”.

The post Standing Aside Is A Position – Weekly Review For 15th Jun 2015 appeared first on Divergence Trader.