Hope

Good day all,

Nothing much on equity charts meant I did not update much this week. Equity markets did well actually, with indices around the world posting small gains. European and american indices look quite good on the charts, with price action showing signs of a breakout from the base that all markets have been consolidating in. Asian markets (including our STI) do not look too good though. Following the title of this post entitled hope, I will upload some charts to show you all why the bullish tide may be coming in.

    

There are other charts I save on my workspace, but in general, the western equity charts look quite good; while the asian markets do not look too well. Next week should paint a better picture for us. I am really hoping for a recovery to put us on track for a multi-year bull run (that starts from 2009). My concern right now is that indices may well start falling from next week onwards. There is a technical argument for this since indices are still at the top of their consolidaton range – and not clearly above. Also, volume over the past two weeks has not been ideal. And the old school of thought is that we need volume to support any strong move. So it should not surprise us if markets start falling next week. However, as the title of this post states, I am hoping last week’s close near the top of consolidation ranges is a sign of bulls coming in to push the markets up and away.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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2 Comments

  1. cookthewe
    Posted October 22, 2011 at 12:11 PM | Permalink | Reply

    IT has been such a long period as the markets move up and down due to whatever news from Europe and US.Pros and cons of the news comes daily which make us dun really knw how to react. TA seems not much help with this kind of situation. ppl are frustrated. occupied the wall street riots are over the place. Do u think the market is on a regular track now? are we covering up from the recession? looking forward to hear from u.

    • Administrator
      Posted October 22, 2011 at 6:43 PM | Permalink | Reply

      Hello,

      Yes, markets have been consolidating for some time now. For a while, I felt lost in the charts as I could not get direction from the charts. But now, I do see something developing in charts of indices – which I should upload here soon. The riots are probably more about anger against bailouts, and unfair/unethical goings-on in the finance/banking world. No impact on markets I am sure. Hmm, I am not really a fundamental person, though I try to keep myself up to date by reading the papers. For me, it is all about Europe. Once the debt situation there is much clearer, with firm and real decisions decided on, the equity markets will have one less weight to carry.

      Honestly, I do not think we went into recession right? I mean, looking at GDP figures solely, we recovered from 2008. Just that now, people are saying we will see recession/depression again because problems from 2008/2009 have not been solved. I do not follow economic information/data very closely, so I cannot give an opinion on where I see the global economy heading to in the year or so ahead. But, I am not the kind who likes predicting it is the end of the world, we are going to collapse harder than ever, etc. You get the idea? Looking at our country alone, it is safe to say we should not be too worried about anything since unemployment is not high, inflation is not too high as well (ex-property, cars). No red flags for us yet.

      Please stay tuned for my next post, I will be looking at how the charts of indices look like after the past week’s trading.

      Thank you for your comment.

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