Singapore Stock Market
Singapore Stock Market
Welcome to the latest update on the Singapore Stock Market News. I think for those who are holding Singapore shares, you will be waiting anxiously for what are the stories to be unfolded from the Europe side. Just when a chapter on the Greece’s debt problem is about to close, the latest juicy news came out from Italy which could be the catalyst to send the market down again.
In fact, I think there are going to be a lot of chapters coming out of Europe! First it’s Greece, Ireland, then Italy, what next? Spain? Portugal?….the list just goes on. Whenever there is a decent rally, it will simply be halted by fresh negative news from Europe. In my previous post on the Golden Cross, I had mentioned the market is going on a bull run. However, a recent spate of price movements had me switching mode again. In fact I had taken profit from ALL my long positions and get ready to short again. I had also advised some of the traders in my clique this afternoon to start to , at least, take partial profit from the recent rally. Now, today instead of using STI index for analysis, I will be using the Hang Seng Index because HSI had been kind to me (reaping some decent rewards from trading hsi futures) and most importantly, I would like to share with everyone how the Asia markets (including STI index) follows the HSI. For the Singapore stock market, I will put some focus on Genting Singapore share price.
Singapore Stock Market – Hang Seng Index
- Hang Seng Index
Our Mr Hang Seng, till date, is still the market leader in Asia. While there are times when I will analyse the STI Index intensively, today is a day of reckoning; for HSI and rest of Asia. In technical analysis, we always try to identify the vital levels. For HSI to continue its rally, it HAS to clear 20K and stay above it. Look at the chart above, we can see that on three occasions, HSI tried to clear that level. During 2 of them, while they managed to break, they quickly sink back below. Now stock market works in such a way where, when a price try to clear a level, again and again, usually by the 2nd or 3rd time if it still fail to clear, it will retrace down. It’s just like running out of breathe, u have to back off, take a break before coming back. I can’t help but to want to quickly update this post because I just watched the nightly news on TV, and the broadcaster kind of painted a rosy picture on HSI because it rised 300+ points. Pretty substantial huh, but the rest of Asia had already put a mark on 20K and wait , and wait, and wait to see if it will be breached. It is the level that matters, not the amount. That is why despite a huge rise in HSI, the STI index stay lukewarm. It was going +6 to +10 at best for intraday. But it quickly slipped into the red when HSI closed red. This incident tells us sometimes not to follow Singapore stock market news too closely. It is useful to do some correlation with other indices and also the forex market.
Singapore Stock Market – Genting Singapore Share Price
On the Singapore stock market, recently, most of the stocks went on a rally. If they are to retrace, I think mostly probably will drop as well. So how do we filter out the ones that will drop the most? Pretty simple, the ones that rised the most MAY drop more. An example are the commodity stocks like Noble Group, Olam and a few others. They can easily drop 10-20 cents in a pullback. However today I will put Genting Singapore share price in focus. Why? It is because it is announcing it’s quarterly result on 10 Nov. I would like to demonstrate that price always precede news. Let’s look at Genting’s chart.
Genting Singapore
In technical analysis, the 200 Moving Average is the level we determine whether the price is in the bull or bear market. Staying above mean bullish, staying below is bearish. For Genting Singapore, it attempted to run over that barrier twice, but failed. This is somewhat similiar to HSI movement. HSI failed on 3 attempts, Genting failed twice. And the candlestick formation itself is also quite indicative. On 8 Nov, it was a doji while 9 Nov closed with a black candle, indicating things are getting bearish pretty soon. I would rate it 80% for price to go down. It would take something really extraordinary to reverse the situation. On this account, I think its quarterly report on 10 Nov will be “perceived” as unsatisfactory. The reason I used “perceived” is because judging from the chart, Genting Singapore price is slated to drop. Therefore, any news that is released will be perceived as bad to justify the drop. There are only 2 scenarios: firstly, if the result is bad, well, it’s bad and price plunge. If it is good, it would still probably miss the estimates by THE analysts. Then it still drops. Immediate support for the STI index will be at 2800, then 2700. It would be crucial to see how is the selling pressure during the drop. If it is coming down fast and furious, don’t be surprised it will test the previous low at 2600 before sinking below that level. But let’s take 1 step at a time. For the moment, the Singapore Stock Market should be in red mode.
supremely spot on with Genting. I suspected that their results could disappoint as well. If I remember correctly, MBS reported very good numbers last quarter as well and Genting rallied on that news. However when Genting released their own results, the stock tanked as it was disappointing.
The writing was on the wall before result was released. The retailers are last to know the result. 1 to 2 days before, price had already shown weakness, indicating early movers,well, making their moves.
yeah… i thought it showed weakness and was actually short on it the day before results release.. however,was shaken out by the late price movement during the day. damn!
It was supported at its moving average at 1.65-1.65. I queued to short at 1.675 and 1.68 because the next resistance will be at 1.70. I was prepared to cut loss if it closes above 1.70. The retracement was on low vol. So i thought the short term downtrend is intact. No worry ep, there is always opportunities in the market.
ep- kevin made the post at mid night when djia drop by 3%. i don’t see how spot on is he.
9 Nov night – DJ dropped 3%
And I definitely did not know that Genting will gapped down 5%, so yeah, I am not spot-on.
10 Nov day – Genting gapped down till 1.65. I placed 2 short orders at 1.675 and 1.68. It retraced on low vol and hit my order and closed at 1.685 on that day
10 Nov evening after market closed – Genting announced result
10 Nov night – DJ opened at 11780 and closed at 11893 – its a 113 points in green.
11 Nov MORNING – Market reacted. Most counters rised. Genting gapped down 5% till 1.595 and hit an intraday low of 1.545.
On the hindsight, Mark is absolutely RIGHT! If Dow Jones did not drop 3% the previous previous sessions to dip below 12K, I would not think that the market is weak, neither will I short on any retracement.
Good one! So this blog will make us realize that stock market is not a gamble but can work in a way one wants. Only what you require is a proper study and a deep analysis.