Good Morning Everyone,
Dow Jones went up slightly on Sat morning by +10.05 points, and closed at 10,012.23. Singapore market would gap down slightly when open. The movement of the individual counters would be dependent on the market movement later in the day, so please take note of the regional market movement as reference.
US
Yup, the psychological 10,000 level is still intact. The US Stock Market fell during the late morning session in view of the Europe Debt crisis and economy outlook. The Unemployment rate in the US is announced at 9.7%, better than the previously expected 10%. However, this did not take too much pressure off the US Stock Market. However, during the last 2 hours, Support came in as the tech stocks and US dollar are pushed up.
The Psychological Support for Dow is currently at 10,000 level. Technical Support is at 9771.91.
My thoughts: Friday’s trading is a sign that the Powers-that-be will try to keep the Dow above the 10,000 mark. So for today, even though Europe (eg. FTSE-London, DAX – Germany, etc) will still continue to drop amid a smaller scale until the situation is clearer, US Stock market will be either going sideways or making a mini-recovery from its current level. I believed that Dow has more chance of doing a mini-recovery in view of the current Support.
However, if another European country announced that they have problem with their debt also, then get ready for another drop. At this moment, Ireland and Italy are being watched carefully.
Singapore
On Friday, STI gapped down, went up a little as some investors took advantage of the low price, but eventually went down to close -61.42 at 2683.56. STI would gap down when open today. The previous Support at 2720.87 was broken, so its current support is at 2629.35.
Today the Asia market is likely to be a little dazed, as no one is able to anticipate where the market is likely to go next. There will be some individual counters that are more likely to be moving up today, eg. Genting, Singtel, Capitaland, NOL, Olam, etc.
This is because of the following:
Genting: It was announced that the casino license by Genting has been approved (see link here: http://sg.news.yahoo.com/cna/20100206/tap-794-resorts-world-sentosa-awarded-ca-231650b.html), and although speculative, it should not missed out the Chinese New Year Boom and will open before or just in time for it. Genting is likely to run up today.
Singtel: Corporate results announcement on 9 Feb 2010
Capitaland: Corporate results announcement on 11 Feb 2010
NOL: Corporate results announcement on 11Feb 2010
Olam: Corporate results announcement on 11 Feb 2010
However, the gloom about the World’s financial situation is still likely to affect how much it can go up. Please be cautious of the effect of China’s Stock Market possibly dropping. I will be cautious and nimble in entering the market today, and would enter smaller lottage for the time being.
Suggestion: Despite anticipation about a Chinese New Year Rally, Asia is likely to be negatively affected by US and Europe’s performance. There should be some cautious recovery these 2 days.
Shanghai also has a tradition of a Chinese New Year Rally, so watch out for it as Shanghai will likely dragged the rest of Asia up!
However, please note that this is likely to be a mini-rally, so please be ready to get in and get out fast.
Disclaimer: We have gotten the results below based on our Trading techniques, and it is valid for the morning only. Please only reference our analysis only after you have sought advice from your Certified Investment Consultant. The information presented above did not state our profit taking, nor cut loss level. We shall not be legally responsible if there is any loss.
Counters we are looking to long today
1) Genting
Magic Number: Above $1.14 & Opening Price
Thank you and have a Profitable Trading Day!!
Herman Loo