Market around the world didn’t end Friday on a high note as traders looked to book profits. Oil broke out during the week as market tried to find footing despite Euro’s inflation numbers coming out hotter than expected. Inflation number is still what market is looking out for as a higher inflation might force the hands of fed to increase interest at a much higher than anticipated pace.
This coming Friday would see the Core CPI numbers which measures the changes in the price of goods and services, excluding food and energy a sense of where inflation is.
STI tried to break above our resistance but didn’t manage to have a clean and successful break. We added in an extra short term uptrend line which might act as a support. STI is still trying to gain some form of momentum but if the upside can’t hold then we need to be cautious. For the moment, we still see opportunity on the long side as we from our previous post on the Electronic sector with AEM taking the lead and UMS having a breakout on Friday. OLAM in particular is also doing well. So there are pocket of opportunities!
HSI has reached our upside target and beyond before a pull back. The rebound has came in as previously mentioned very good given current market conditions. We have drawn a short term uptrend line which will act as the support for any downside for now. For this week, we’re expecting some consolidation for HSI and unless we see the 5ema being broken above then we’ll look for a long opportunity. The good thing about HSI is that its making a higher low and it shouldn’t pullback beyond 20k if not our uptrend is invalid.
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Kelwin & Roy