Technology Sector For Past Few Days

Company Level

NE Noble Drilling

This stock will rally to at least 18.69. If volume is to come in, it will hit 24.35 and reverse downwards. Do note that the crude oil issue is not resolved yet.  That will result in one last leg to tank until I can see further confirmation.

NBL – Noble Energy

This stock will rally to 51.93. If volume is coming in, we will see it test 66.65. Given the time of the rally, we can expect volume to come in and push the price to test the 200MA.

Technology

AAPL has hit the low of about 104 and reverse upwards 109.41. With volume coming in high we should see this testing 115 soon. Watch! We should be there by month end.

BABA- Alibaba

BABA has been moving sideway and bounce off the low at 50SMA. We should see the stock testing 120 soon with the christmas rally now. RSI has indicated that there are more room to the upside.

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.

Forecast for 16Dec14

Dear SGWiseInvestors Reader and Fans,

Last week and yesterday has been a volatile week. Readers have came back and ask me if the market is going to tank or is it a buying in dip opportunity. Seriously based on my 10 over years of experience this is a buying in dip opportunity. Why? Gold is a safe heaven commodities and is a good gauge for fear. When the market is about to tank, have used this tools "Fibonacci Retracement" to determine the support and buying pressure that may come in. Yesterday was a test of 61.8% support at 17,169. There is selling pressure that pushes the market to low of 17,115 and closes at 17,180. If today the market holds at this support (which is unlikely), we should be heading up for a rally. 

I believed that we should be testing at 50% support 16,915. I can see that RSI is indicating that there are still some room for one or two more falls and we are heading for Christmas Rally. I do note there will be FED meeting this Thursday and this may be a triggering point for the rally. FED may announce something doverish to boost the market and to lure more traders into the market. (they cannot possibly scare all investors out of the market, then how are they going to make money). 

I do notice that Dow Jones are now heavily linked with Crude Oil. There is no need for any good/bad news to be catalyst. If the Crude Oil rebound, the stock market will re-live. But whether if it is short lived or not, let the volume tells you.

Dow Jones – Where are we heading?

CLF15 – Light Crude Oil

Commodity Crude Oil is the culprit for bringing down the whole stock market. The above chart show a nice downtrend since 06 Oct 2014. This is accompanied by increase in volume. Technically this means that there are genuine selling by Smart Money and they have not seen the price that they want yet. Thus there is no rebound or up candle stick. Target Price for Crude Oil should be around USD48. That will be one big strong support that we are looking at. Currently we can say that downside are more favourable in the short run until good news/ announcement comes in.  

Gold – Is it heading North or South?

Gold from the above chart shows that it is currently on the uptrend. This is probably due to increase in fear from Crude oil commodity bringing the stock market down. Yesterday decrease of about 29 points is currently in the support of 30SMA support. We should see absorption volume coming in at this point if the upside will to resume. Else we should see it retesting 1140 soon.

Daily Chart and Weekly Chart for $Brent is attached. Currently the daily chart and weekly chart is showing that it is overbought. There is no floor yet thus there is no indication where is the bottom. Yesterday increase in volume in selling indicated that there are a lot of people selling their shares. We can say that there are increase down pressure as indicated from the volume. Whether when will we reach the bottom, only volume and price action will tells.