Reviews for 09Dec2014

Dear all fans and readers of SGWiseInvestors,

Yesterday is a super day for Traders as we witness continuation of selling of energy stocks that led to Dow loss.  Gold which is a gauge of sentiment for fear inches up and closed at 1,229. NASDAQ closed on positive note. Penny stocks lead the Dow and trims the loss and closed at 51 points. We can see that although there are no reversal yet but we can say that there are buyers at this support level at 17,801. We will have to see today’s candle to confirm on the reversal or continuation of the ST downtrend.

From the above chart, we can say that there are absorption volume at 17,600 and this is a big support at the moment. This is accompanied by high volume and believe that today will be a higher probability that market will be going higher.

XAU - Gold

Is Gold heading up or down? Gold increased the past few days and I did indicated earlier on that Gold is going to soar to around 1221. However, we can see the increase in volume. This shows that the fear of the oil issue is not over yet. We may expect some news soon. We should see gold testing 200SMA at 1271. If the increase in volume persist, then we should see it test 1300 in the near term.

Brent – Brent Crude Oil

What happened to Brent Crude Oil!? It's heading downwards again? Yesterday we witness bounce in $Brent and this led to Dow Jones trim its loss. Will we see it bouncing up? The chart is not looking good and yesterday bounce is accompanied by only average volume. We hope to see more volume coming in and this may lead to reversal. At the meantime, any bounce is for more short. We may see the bounce to 76 to close gap and thereafter further downtrend to continue.

China Stocks round-up

WUBA - 58.com

Emerging buyers! Let us touch on the first stock, WUBA. This stock is likely to bounce higher. This stock dip to below 42 and closed with a white candle on the upper wick. The only worrying about this stock is there is no high volume during the absorption. Thus we have to wait on wed closing candle to determine if this is a buying signal.

BABA – Alibaba

If you did follow our post for BABA, you will be able to link them all together. And now, is this a buy signal for us? This stock has found support at 101.25 and bounce off, closing at 107.48. The volume shows increase in buyers. The candle body is wide and this shows the bullish sentiment of the stock. We believe that the stock has reversed and is on the way to higher high. The first resistance is at 110 and subsequently is 115. If the stock is bullish enough, this stock will test 120 in no time and making ALL time high.

Qihu – Qihoo

This counter is going to bounce like on a trampoline? This is a counter-trend approach. Meaning to say, the stock is currently in the downtrend and traders are targeting fast profit. This kind of risk is higher as traders are catching falling knifes. Predicting the bottom. But if the prediction is correct then this will a huge profit for the risk taker.

FB - Facebook

What about Facebook? Can we buy now? One of my followers in Stocktwits ask me about this stock and whether if it is time to enter. The answer is NO. There is no buy signal yet. Investors who is afraid to lose boarding the train and do not mind locking their funds can buy in this stock at support price 72-74 range. For Breakout trade, look for about 78 to enter. Do note volume must be high (about twice the current volume).

TWTR – Twitter 

Another counter-trend play. This stock is currently in the downtrend. Yesterday price action has indicated that bottom has reached. The support is at 34.62. It closed with wide body and at the upper wick of the candle stick. Volume is quite decent. If volume is to come in, together with more buyers, we should see it closed gap at 46-48 before continuation of the downtrend.

AAPL – Apple

Has APPL reached the support required? One of my followers in Stocktwits ask me about this stock and whether if it is time to enter. The answer is YES. There is buy signal yesterday. Bottom/ support is at around 110. If the stock is closing on a positive note today, we can expect this stock to gain strength and test 120 once day.

TSLA – Tesla Motors Inc

Heading up or down at the bottom? Support is at 205 and we should see this stock bounce to around 231-240 and downtrend will resume. Unless we see buyers coming and increase in volume. Else we should see more downside for this stock.

Dow Jones Roundup – 09 Dec 2014

With the available source and data provided by StockCharts, we can see that Dow Jones has moved from “ Improving” to “Leading”. This means that there is an increased in bullishness and Dow Jones is gaining momentum. This is likely because of large cap moving/bouncing off the support/bottom. We can see the changes % at 4.7. Nasdaq is also doing well but it is losing momentum. Thus investors can still hold on to their current position as we predict that market is turning bullish soon.

Worst Sector?

With the plunge in $Brent last Friday, this led to sell off in the Energy stock. Other sectors doing well includes Technology, Cons. Staples, Health care, Utilities and Financials. The increase in momentum in Financials could be due to the better than expected Non-Farm payroll data. Traders are expecting a hike in USD coming in before March 2015. Thus Financials should be short-term bullish till further confirmation from FED. We did publish out  yesterday that there are also a lot of IPO Tech stocks that will be issued Dec 2014. Thus with that in play, we should see Tech stocks moving in correlation with IPO technology stocks. 

Monday Dow Jones Market

Hi Readers and Fans of SGWiseInvestors,

Thanks for reading the blog material and let me do a run through of the Monday Dow Jones market.

Just a reminder to all readers who have not signed up with our closed group Facebook member, please do so. I am at the midst of finishing up trading materials which I believe will build a good foundation of what trading skill you have. This is only complimentary for our closed group member.

Monday Dow Jones Market

Stocks suffered their biggest one-day slide in nearly seven weeks on Monday as a withering sell-off among energy companies, which closely tracked oil’s continued price slide, dragged down key benchmark indexes. 

Downbeat economic reports from China, Japan and Europe also dented sentiment. Nervousness among investors was evident from a jump in 10-year Treasury yields, rising five basis points and a 20% jump in the CBOE VIX index, commonly known as Wall Street’s fear gauge.

This pullback is long expected as RSI has been overbought since 17 Nov 2014. This pullback is met with support at 17,800. If the market is to pullback further, we will see it approaching 17,600 support. 

Readers of all sources are asking me about the outlook of the market. I remain short term bullish. This is basically a buy in dip opportunity for traders. The Short-Term Uptrend and Long-Term Uptrend are still intact. Unless we see a breach in support line and this will be our confirmation if the uptrend line will still resume.

There are a lot of IPO stocks that will be launched this month. There are three prominent Tech stocks like Lending Club (NYSE:LC), MOMO (NASDAQ: MOMO) and also Workiva (NYSE: WK).

1) Lending Club is online network that connects lenders with borrowers. It is offering 57.7mio shares at price in the range of 12 to 14. Investors includes Lending Club is GOOGLE.

2) MOMO is platform for dating activity but is also used to help people find new friends. This is reported to be the third largest mobile social app in China behind Wechat and QQ that are owned by Tencent.  Investors includes ALIBABA and 58.com.

3) Workiva is a cloud-based and mobile-enabled platform companies that use to collect, analyse and manage business data. Customers include Boeing, Google and Wal-Mart.