White Knights meet a Black Bird

Today's title sounds crude. Well, sensationalism is what makes writing interesting.

The white candles in the past 3 days have been overcome by a black one. No fret. The market looks like it is going to have good upside in the short term. Congratulations to those who bought in the upswing in the previous days to take advantage of the panic or better, at the bottom about a month ago.

The market took a turn today going down in 2 large swings. Sellers overwhelmed the buyers later in the day to cause the lower finish. Heavy weights like the banks have seen good upside in the pass few days. It is no wonder that a "sell spell" is being cast. Today's black bird is probably the result of reluctance to buy in a time of uncertainty. The general outlook remains bleak, with the US likely to declare H1 shrinkage.

Back to longer term charts, the 2-year STI chart shows an interesting twist. The market seems to have began trading in a range phenomenon. Thus, I upgrade my next 2-month outlook from "Bear" to "Range". Closer scrutiny shows a good chance of range market behaviour between 3400points to 2800points. I shall keep to 1 or 2 significant figures as higher precision, to me, makes no sense. How can anyone estimate a peak or bottom to such precision? Market sentiment changes and it is not surprising that even professional analysts change their stance frequently.

Keeping the current range outlook in mind, I foresee more potential upside in the Singapore market. I would expect to trigger my "stop-loss" measures in the coming weeks and wait for the next low to pick up stock. The rationale here is trading ups. Greater risk takers can try short positions on the dip. A very important point to note is, that shorting is much more advanced technique. I suggest we leave it to the pros.