2919 will still be the KEY Support for the STI today.
Good Morning Everyone,
Wow, will be the word to summarized what happened to the market within the span of just couple of hours as we saw the HK lossing 250points in the afternoon session, we saw Shanghai market lossing 1% too while Singapore market gave up all the gains too. Frankly, I was outside when I heard about the movement and crossed checked with the S&P quotes but the Index was holding firmly at around 1061-62 level. Then I crossed check with the Dollaryen and released that there were some selling in this currency thus I know that, very good chance, we are going to have some bad news from the US side.
Such afternoon movement is rather typical especially whenever there is some news coming in and for great apparent coincidence (I never believe in coincidence in the financial markets), the Asia market always seem to know whats coming, hours before the release of the numbers.
Of course, I am not saying that it will always happen in such a way BUT based on the last 5years of observation, it does seem that Asia markets traders are getting the hang of it, pretty well.
And indeed, we have a rather big disappointment in the existing home sales figures last night. Read this for more details: http://money.cnn.com/2010/08/24/real_estate/existing_home_sales/index.htm
But for me, being a very technical person, I was wrong in both my call in the HK chart and the STI chart yesterday which I would like to apologize BUT I am still very BULLISH in the STI at the moment as long as it stays above 2919 today.
If the STI opened lower and trade above 2919, I will stay as a BUYER than a seller and still targeting to see this Index hitting the 3000 mark in the near future. This morning, I already observed that DollarSIn have difficulty in breaking the 1.3625 level thus I am pretty confident to see it coming back down to 1.3550 region in the next 2-3days. If that happen, I am looking at the STI to re-test 2950 again.
For the local stocks,
I am looking to load into DBS at 13.70 region. I believe we are going to see some rebound from here. All my Indicators are showing good odds signal to take some here.
I mentioned about the $1.60 resistance on Genting, and indeed, the DH of the stock yesterday was indeed $1.60. It was sold down to $1.52 in the later part of the day. The support level for this stock remained at $1.50 for the time being. I am going to continue to monitor this stock as my target for it is still $1.75 by end of the year and $2.20 by next year but I think the recent huge rally has exhausted many into it.. in the meantime, I think it will ranged between $1.52~1.59 for the next 4-5days.
On the Currency front,
I was waiting for the selling of the dollaryen to come since mid July. The market must really break the low created on the 27th of November 2009 so that stops will be triggered and indeed, it happened as then the low was 84.82 but last night, the market sold down to 83.57, a level not seen since 31st of May, 1995! The lowest in the recent 2 decades was 79.77, created on 19th of April 1995 before it rallied all the way to nearly 105 by 19th of Sep 1995.
Many players are citing that Dollaryen will hit 80 in the near future but I have my reservation as its very clear that the Japan economy truely cannot handle such high YEN in their already dire state economy as awhole. Their export are getting way to expensive for others which are forcing more people to go alternative. The Japs does great work in their quality assembly therefore marking prices for quality is reasonable but with the entire world economy on the recovery stage, consumer and business merchants may really put quality aside if there are slightly less better product but the price is much more economical for them.
If the Dollaryen breaks above 84.60 today, I wont suggest anyone to short this currency for the time being. Now trading at 84.30s
More updates as the market progress…
Disclaimer applied as usual.
Have a great trading day ahead! 
Kelvin Han
V3Go System Originator
Read more: Did You Trade