Market Condition

Dear SGWiseInvestors Readers and Fans,

Sorry if the blog is not updated daily as I have been observing what the Smart Money is acting behind the scene. I observed on the thanksgiving day that there are offloading of equities. But on short term trading methodolody, it will be bullish till end of the month. We may even hit all year high by Jan 2015. In our previous blog, we indicated that this week is the crucial week and will likely see the reversal after the speech by FED, Yellen on Wednesday. Indeed yesterday rally is impressive with 213 points gain. Momentum is up and there is a lot of buying with volume going higher. There is not much selling judging on the upper wick of the candle. 

Fans from Stocktwits came and ask me for my opinion on the market. If you read my blog regularly, it was written black and white that Wednesday or Thursday is the reversal day.  Indeed it came true and you will know the accuracy that we have in the stock market. Investors have to obey the rules and not let your emotions run wild (talk is easy but this comes with clear mind and trading discipline which may takes years to cultivate). Today is also a good time to enter the stock market as the run will last till Jan 2015. 

From the below chart/diagram, we can see that the one that is currently the market is more bullish in Nasdaq than Dow Jones. Thus we will look at the top runners yesterday later and we will be able to distinguish the leading company for yesterday ‘s run. Those that rally the most yesterday will be the one that continue to rally more than other companies today (*normally).

Sectors

We have attached the above charts for your analysis. We can see that all the industrials have hit the support line and followed by white candle. Yes we are going for the bounce. The selloff in Energy sector recently has led the Dow Jones. This is the leading sector for yesterday. Cyclical, Material and Health has been holding up well and they are the sectors that did well yesterday. The second diagram shows the period from 06 Mar 2014 to 17 Dec 2014 of which sectors perform the best for LONG TERM Investors.

From the above diagram, we can see that TOP 5 is as follows. We have to look in further to see if this are the stocks that we can put it in in short term.