As shown on dow, it opened with a good start, and I guessed it scared the shortists quite abit as I mentioned in my previous post regarding the calls and puts ratio. However, after the opening, it went down and traded slightly below about -0.5% if I remember correctly. Do remember that I mentioned the big money will want to make money from the majority, which is shown in the call and puts ratio. With a higher put warrant ratio, it is obvious that they can make money from the puts by pushing the indexes up! When the markets closed, dow closed with a positive 66 points (0.51%), NASDAQ at 18.73 points (0.72%) and S&P at 7.59 (0.52%).
With YEN/USD at 110.96-110.98 + 0.88, it is still a worrying cause. With oil prices rising back to $95 again, you probably will wonder if this will be another factor again. Hard to say, and why do I say that? Oil prices are spooked right now due to the shadows of the subprime and the deflating USD. However, please take a look and monitor the USD against other currencies. It seems that it is now growing back slightly and slowly! This is a weekly chart of the USD vs SGD:
http://sg.finance.yahoo.com/q/bc?s=USDSGD=X&t=5d&l=on&z=m&q=l&c=
If you can see, Tuesday and thursday is the lowest point, and it is slowly moving uptrend. However, it is only the yen that the USD is not strengthing itself against. More to take note with regards to this factor.
Next week is the holiday week for US markets, so there is a high possibility that it will have low volume in play in the US markets.
Here is a chart of the STI:
Looking at the STI, friday's close was below its 200MA, which is 1 of the major resistance line, and also, this close is near to the 50% fibonacci line. If STI closes again below its resistance line at 200MA, there is a high chance that it will fall back probably to around 3321 which is 1 of the resistance point or it may be even lower depending on the situation. My take on this is STI should be closing nicely at around 3461 or slightly higher on monday.
Another point to take note is the trading periods in a year. Especially in the end of the year, trading is very volatile because most of the companies are releasing their year end results and expectations are very high during this period. I forgot which book I read, that it indicates March till June is the good period for buying in stocks. If you have chartnexus, you can see from the STI chart, from the past 2 years, it has indicated as such. However, do take this with a pinch of salt as it may not be accurate and I do not have the 10 years record too.
Lastly, enjoy the weekends while there is still! :)
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