New Year

2010 is coming to a close. Next year I'll be posting lesser to dedicate time into research. System Z captures my trading method quite well but it can't handle parabolic exhaustion and short-term trading.

Exiting at high when price goes parabolic is easy to see using eyeball but not straightforward to program into code. The lack of hourly data makes resolution too coarse for generating short-term signals.

Anyway, we'll see.. To my readers,


Updated 2nd Jan:
Technical analysis of MERMAID/SYNEAR.

S-Shares

The shanghai composite index looks likely a bullish chart to me. That could likely bode good upside for china stocks listed in singapore.

Examples of stocks basing near lows are YANLORD and SYNEAR, while examples of those strong ones are YZJ and GMG etc.. Look out for good buying demand to signal time is ripe and confirm this view.

PS: we beat the tetris game.. she play first 10 levels i play last 5 levels. if not usually reach the end really fast already lost concentration. yes!

New High

Stock indices are breaking new highs.
Will their new highs be sustainable?

First let's look at US and Hongkong index. They are singing the same tune except that its quite obvious the asian index HSI is relatively stronger than US index DJ (compared to their levels 1 year ago).



Next let's look at DJ which reacted well to a bull signal. Normally if market sentiment is bearish, when buy signals appear out of bullish setups, they will fail. However this time the buy signal did not fail.


Finally, let's take a closer look at STI. View of STI:
Above 3220 - bullish (at least test old support line)
Below 3100 - bearish (likely severe correction)
In between - neutral (with slight bullish bias)


I remain bullish (since july) on market until dropping below 3100, which could mean major sell signal even for longer term investors.

PS: in oct i said sti will rally 150 points to 3300 then selloff. it really cross by few points then drop to 3120. media blame it on north korea firing missile. oh pls they just happen to be scapegoat. the correction is already decided two months ago.