Sector Reviews after X'mas Rally

Dear SGWiseInvestors Fans and Readers,

Merry Christmas! The Christmas rally as predicted did come true. Now the market is experiencing low volume rally to the New Year. Emails received asking if when can they short the market. Not now. The price action and volume indicate we will have the rally till next week. There is no selling climax behind the scene thus we can expect more rally to come. RSI and price action indicate that there is still room for more upwards and momentum of the trend is strong. 

Market Level

INDU – DOW Jones

Going up?

NASDAQ

Upward trend?Nasdaq is now at the support of the RSI at 57.85. We can see that it is moving sideway. We hope to see the trend curling upwards to indicate more momentum. MACD is indicating that there will be a crossover. This meaning BUYING SIGNAL will be triggered for MACD users.  We forecast that the Nasdaq will breakout at 4800 and more upward movement in weeks or even days to come.

Sector level

From the graph that we attached for the overview of the market sectors. We can say that the strongest is utilities. Energy sectors is not a pick now. From the chart below, there is a high chance that it will not bypass the 200SMA hurdle. We should see it going down soon unless volume is there to push the prices higher. Health care looks good as it has met its support at near 200SMA and this seems like it is rebounding to higher high soon. Material is having a Doji which means that there may be no buying coming and may see a retracement soon for buying to comes in. The rest of the sectors looks promising .. every dip is a buying opportunity.

Reviews on 26Dec14

BABA – Alibaba

This stock is at support near 50 which is currently at 48.03. Moreover it is now at 50MA support.

This week is a crucial week for BABA as whether it will pop up or go down to below 100. We reiteriate bullish view on BABA. MACD  is looking to crossover and we will need that to move higher. This stock has been consolidating for months and it looks like it is ready to move with YHOO moving up as well.

YHOO - Yahoo

Consolidating since Mid November and RSI shows that support is at 50dollars. MACD is not crossover yet.Volume is low as it is festive month and traders are not actively trading. If this week we see MACD crossover or a spike up in the price, this stock is likely to breakout and should see 60 soon. 

In Trading, I learned cause and effect. If there is consolidating sideway (accumulation in this case), we should see this as a strong support and moving higher gradually.

WUBA – 58.com

This stock is a buy if the price shoots above 200SMA 43.50. Currently is is consolidating sideway. This is maybe due to MOMO selling pressure that leads to decline in BABA and also WUBA. MOMO selling pressure seems to be ending and this few days we saw Smart Money moving in. Thus we should see it moving real fast and moving towards 20 soon.

QIHU – QIHOO360

This stock is very volatile and looks good to move higher. RSI indicated that the stocks is gaining momentum and is likely to zoom past RSI 50 hurdle. MACD indicated that that buying is in place. 

Volume increases as prices is going up. We should see this stock meeting  72 high as first hurdle. 

With its acquisition of Coolpad and also the implementation of Voip we should see it gaining strong market cap for mobile sector. This is a BUY!!

FB – Facebook

Facebook has been moving strongly upwards lately. This stock has abit of selling pressure on Wednesday. Next candlestick is indication of resume of upward trend or selling comes. We should see it consolidating sideway. It seems to us that there is more room for upward.

TWTR - Twitter

This stock is currently near support at 45.26 RSI. This stock has abit of selling pressure on Wednesday. Next candlestick is indication of resume of upward trend or selling comes. We should see it consolidating sideway. It seems to us that there is more room for upward. MACD has crossover, indicating that it is buying that is underway.

APPL – Apple

This stock is currently at support. It is consolidating sideway at 111-112 range. Low volume is indicated with dips. Thus we should see this supported and there is more room for upward. 50MA has been a strong support and this will be a critical support. 

GPRO - GOPRO

Love this stock. This stock has been on the strong uptrend. Within 3 days, it moved up more than 10 dollars.we should see it moving toward 70. Volume indicated that there are more upside. RSI indicated that it is moving upwards and MACD has just crossed. We should see this meeting 80 in months to come.