Stock Market in December

I am back for the stock market in December! After a 2 weeks hiatus, it’s good to be back in the fray. It had been an eventful 2 weeks for me. I am into the final phrase of my preparation to launch “The Timid Clique” where subscribers will get to view how I trade Singapore and US stocks and at the same time, getting into favourable trading positions in Futures trading in Indices like Hang Seng, FTSE and S&P500. The previous week also saw me completing my FIRST ever marathon – The Singapore Standard Chartered Marathon 2011. I completed the 42km run in 6 and 1/2 hours. Not exactly fast ( I was hoping to track the Kenyans ) , but considered when I first signed up in July, I could barely complete 2.4KM, it was quite a feat. Let’s savour the moment once more.

 Sweet indeed! Alright, it’s time to get down to business.

 Stock Market in December – Uncertainty looms

 We shall take a look at the Dow Jones Industrial and Singapore Straits Times Index.

 The DJ looks a little weak in near term. A small double top was breached, with support at 11,800. I may be wait at 11,750 – 11,780 for possible reversal to go long in trading Futures.

Stock Market in December

 STI was looking weak in mid Nov when a support level at 2700 was breached, hence completing a double top. However, a freakish and monstrous gap up overnight in Europe and USA rendered it to an unsuccessful break. It went up but down again recently to breach that 2700 again! I reckon that if it is to stay below that level, it has a chance to test Oct low of 2550. Hence I m more inclined towards the Bear.

Stock Market in December

For the past 5 trading sessions, STI has formed a bearish descending triangle; lower-high to lower high. I will reverse and go long the moment the downward trend line is bucked.

Stock Market in December – Missing in Action

Volume is missing in action. Vol is pathetic with market mostly moving sideway. To establish a successful break up/down, we need vol to push. It is missing. On the chart, it looks weak, on the ground it feels neutral. Market is probably waiting for a major good/bad news to shake and move. In times like this, it would be better to trade small position in stock or stay out at all. And on days where it is pretty quiet, I will rely on digging a few ticks here and there in the Futures market. But with the year-end window dressing approaching, market could be gearing itself for a push upwards. But my personal opinion is this; everyone are expecting a year end rally. When expectations are high, it usually won’t materialise. Market MAY do a sharp drop, and by the time everyone are resigned that there won’t be a rally, then it comes. Just a personal opinion for the stock market in December.