S&P 500

Fear Is At Its All Time High, BUT What Is Market Doing?

Kelwin & Roy S&P 500 ,
27th September, 2022, 4:33 PM

Image credit : https://edition.cnn.com/markets/fear-and-greed

Image credit: https://www.aaii.com/sentimentsurvey

Currency market is going nuts, pound making new low against USD, Jap yen is also at a an all time low while the USD index is strengthening. This together with Fed relentless effort to rein in inflation has caused markets to tumble and fall hard. With fear and volatility at its highest, one would expect even more selling in the market. BUT something we notice that is catching our attention. US markets are actually holding up.

Everyone is eyeing for markets to break June low and maybe a possible fake break before a rebound comes. But for the last two nights, markets has actually been able to hold its support of around 3641, very very close to the June low. With such brutal  sell down over the last week we might actually see some rebound coming in. Indicators are currently oversold and yes oversold can remain oversold for an extended period but at least we know we’re not at the top and we might be scraping the bottom. A positive sign is that the rebound is happening at the Friday’s low where is actually tried to rebound from.

We’re watching to see if this support can hold for another session or two and one more thing to look for is the momentum. If market is met with selling, we would see selling with intensity and that’s one sign to see that market is not ready for a rebound.  Another note to remember,  Oct will also kick start earnings. It may or may not bring cheer to the markets.

What’s your take? How are you positioning yourself?

Yours

Humbly

Kelwin & Roy

S&P 500 – [ Crash? Stress? Distress? Let’s Confess, No One Can Predict A Crash, Our Two Cents Worth]

Kelwin & Roy S&P 500 , , , , , , , , ,
30th October, 2020, 7:07 AM

S&P 500 – [ Crash? Stress? Distress? Let’s Confess, No One Can Predict A Crash, Our Two Cents Worth]

Image source: kennofinanical.com

SALE SALE SALE!! haha..nah kidding! Are you worried, stress or unsure of what to do? We’ll just share our two cents worth on the current market and why this time might be a good opportunity to enter the market if you’re investing.

Market is currently jittery with a few possible reasons.

  1. Record number of Covid cases in the US, White house seems to have given up on fighting covid. Lockdowns are happening in Europe, will US also impose lockdowns?
  2. Stimulus Package. As usual, talks and talks about stimulus, delays anticipation all these adds to the volatility.
  3. ELECTIONS! It’s just round the corner! Market gets jittery around this period and volatility ensue.

As we have pointed out a few times, the weeks before election can get bumpy and even on the day itself and the day after as market reacts to the news. But from stats, we can see that regardless of who wins, market tends to go up after all the noise.

Let’s now take a look at the S&P chart to see where it might head to

S&P 500 30th Oct 2020

Chart source: poemsview 30th oct 2020

From a technical point of view, S&P is currently below the 100ema which is not a good sign but no need to panic yet. The next support would be at the 200ema at around 3200 level. Worst case scenario might be to 3132 level. Currently, S&P500 is still considered in an uptrend as the emas have yet to cross. If the 20ema cross the 50ema then the first red flag will come out. A further cross of the 100em would be our second red flag and we’ll really have to re-look at the market then.

For long term investors, this might present some opportunities for entry with a stagger system and not entering by one whole batch. We usually enter around 3-4 batches for one stock. For investing, don’t try to time the bottom as from past experience its almost impossible to do that.  If you’re a firm believe in that markets go up in the long run then you might want to take a look at the markets very soon. ( not all markets ya, be selective! ) We’re eyeing the S&P500! Have your shopping list ready! We have ours! Do you??

We’ll share more of some of the stocks we’re looking at in the next few post! Keep a look out!

Yours

Humbly

Kelwin&Roy

S&P 500 – [ Don’t Fight The Fed! ]

Kelwin & Roy S&P 500 , , , , , , , , ,
4th June, 2020, 5:55 PM

S&P 500 – [ Don’t Fight The Fed! ]S&P 500 4th june 2020

Chart Source: Poems2.0 4th June 2020

Many are still in disbelief as S&P 500 rose over the couple of weeks. From our previous post just two weeks back, we mentioned to stay alert as it was in a consolidation and could breakout either way. S&P 500 chose the upside so as a trader, being flexible is key. It broke out and touched our target of around 3111 and a little bit more before having a small pullback.

So what now?  As the S&P500 has been supported by the 5 and 10 ema unless it closes above we’ll have to follow the trend. Around 3130 area is the resistance for now so some pullback might be expected. You can view the chart on our Poems2.0 platform for reference.

In closing, as the word out in the street goes, DON’T FIGHT THE FED! It also means don’t fight the trend, follow the trend as the trend is your friend. =)

We hope our trading blog has shed some light on the market and our readers have learnt something from our sharing.

Yours

Humbly

Kelwin&roy

 

S&P 500 – [ Sideways Consolidation, Stay Alert! ]

Kelwin & Roy S&P 500 , , , , , , ,
19th May, 2020, 7:31 PM

S&P 500 – [ Sideways Consolidation, Stay Alert! ]S&P 500 19th May 2020

Chart Source : Poems2.0

It was a very strong finish over in the USA as stocks surge on positive news of a vaccine by moderna. 

That surge took the S&P past its 200ema on its daily chart which is a positive sign if you’re on the long side. On the daily chart we can see its on a bigger sideways consolidation from about 2760 to around 2968 levels.

If S&P 500 does break above the 2968 level we might see it move to the next possible level of  3100. Many have been skeptical of the rally so far and to be fair we have been too. S&P 500 have rebound about 30%  since the low and is just about 13% off from the high. Its quite hard to imagine that given all the bad economic data that has been coming out. With unemployment data at its all time high, people calling this worse than the great depression. But one thing that  other traders are mentioning is ‘don’t fight the feds’ . They have been quick to respond to the crisis, printing and pumping trillions into the markets.

Though we have caught some downside, we would have wished for a lot more but if market at this point in time is not going down, let’s follow the trend and see where that takes us to. It could be a false breakout at this level so stay alert! Don’t give up yet!

If you like to have a discussion on the markets feel free to drop us a line. 

Yours

Humbly

Kelwin&roy