STI outlook

everyone has their own views and here's mine

possible bearish windows acting as resistance.
double upper shadows form in the past two days.
approaching resistance levels about 3187 points.
last week window dressing might be the case of the bullishness in the market.



Things to watch out for: whether STI can cross above 3200, huge resistance levels ahead.

Overall outlook: to me i still think that it is bearish! so do watch out for possible weakness in the market. STI may have just formed a lower high.

someone asked me recently, should i buy gold since it has fallen quite a bit? my reply was,
1) firstly, gold has been on a 10 year bullish run, therefore the recent bearish sentiment is not very significant as yet, as shown in the chart above.
2) secondly, gold prices might not recover anytime soon, posssibly in the next year or so, there is still a strong selling trend.
3) gold does not pay cash dividends, wad u get is resource appreciation if you choose to invest in it, so shouldnt u buy gold as low as possible when the market is bullish on it instead.
5) never try to buy against a market, buy when its on an uptrend.

today market dip partly due to raise in china interbank interest rates below 3100 but it did not close lower than the previous day's low.
furthermore there are 3 bullish window gaps to act as a support for sti, and then further fibonacci support at 3043. this is a crucial support for the sti, and we should look forward to see if it holds.
today's volume is also slightly higher than the average therefore, people looking to long stocks should highly reconsider, i strongly advocate that there will be more downside expected in between possible short rebounds. It is still a bearish trend overall.

value investors though can however start doing your homework and pick out stocks that have good fundamentals and expected to rise once market sentiment changes.
even if interest rates rises, real estate investment trusts(reits) are still a good form of investment for the everyday investor.

Yes the market has rebounded showing a white bullish candle.... but overall it is still on the downside. STI tested the 61.8% fibonacci resistance level last fri and failed to break it.
Market is still shaky therefore be careful if u are looking to long. my prediction is there might be more downside expected. ADX indicator still shows a strong bearish trend.
healthcare stocks are to be watched. in lieu of the haze,stocks such as medtecs and healthway. highly speculative in nature.



i also believe that US markets has reached its peaked and is in the first wave downwards. Be careful!