Divergence Trader
Trading The Election Week - Weekly Review For 7th Sept 2015
Francis Chua
Publish date: Mon, 07 Sep 2015, 02:18 AM
Friday of this week we will have the GE2015. First let us encourage everyone to go out on friday and exercise your rights to vote.
We’re electing a leadership that can help Singapore do well for many more years.
It's a pleasure to be writing to you after 2 months since my newborn was born as I am extremely busy taking care of baby.
There is worries of recent downturn in global growth, China currency devaluation and US interests rate. Let’s look at some of the key markets around the world.
Travel broadens the mind, but even without leaving one's desk a modern trader knows that worldwide markets are interrelated.
Germany – Weekly MACD histogram still declining.
Hong Kong – Weekly MACD histogram still declining.
Japan – Weekly MACD histogram still declining.
China – Weekly MACD histogram still declining.
In summary: certainly much more bearish than one week ago. This is not the place to go catching falling knives. It is a place not to panic and look for longer-term buying opportunities a bit down the road. In the short run, expect high volatility (duh!) and do not be a hero.
Let's take a look at what our STI charts are telling us...
STI Open: 2,987.18
STI High: 2,987.18
STI Low: 2,859.32
STI Close: 2,863.81
Price Change: – 92.13
Percentage Change: – 3.12%
Total Volume: 1.23 Billion
STI fell 3.11% for the week. MACD histogram are struggling to move back above zero levels and watch 2,810 as near term resistance. If the market is ready to form a bottom, STI should hold above the 2,819 support area. A failure back below this level and the next lows, 2,700 – 2,740, will likely be retested.
Market crowds grow happy at market tops, even such ones as we had in October. They turn despondent at market bottoms and sell at the worst possible time. Professionals do the opposite - we aim to short high and buy low. That is why I began pointing out bearish signs to you several weeks ago. Now, as this downtrend accelerates, I am watching it with great attention, looking for the signs of a bottom.
Needless to say, the protection afforded by stops (hard stops, not mental stops!) is one of the foundations of a cool and calm trading attitude.
Trade safe!
Divergence Trader
The post Trading The Election Week – Weekly Review For 7th Sept 2015 appeared first on Divergence Trader.
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