Dow Jones

Uptrend support broken, rebounded off previous support level of 10263. Should Dow be unable to close above 10263 within next week, we might be seeing 10171. I do not take short positions, so i will be sitting out this wave. The price action can provide good clues to possible momentum changes. As of friday, the selling is still strong. It is also a perfect excuse for traders to take profit after the rally up from early november.

The failure to close above the top uptrend line is an indication of a slowdown in uptrend momentum, and the prices hugging the bottom uptrend line is the indication of a reversal of trend. Together with the narrowing of range in the bars, a sell off was indeed imminent.

The analysis has been done in hindsight, the takeaway is to look for the signs on the flipside when the buying opportunity comes. TA is not fortune telling, it is about stacking the odds with you to look for a high probability of success. Just like any business a successful example is of one that is properly managed, with cost control measures and profit maximising means.

Dow Jones

Dow Jones-

A close above the current support level could indicate the end of the selling wave. Futures as of 2045H is showing +97. A positive closing on DJI will affect STI sentiment tomorrow positively.

Capitamalls Asia IPO

Capitamalls Asia (CMA) has interests in and manages a pan-Asian portfolio of 86 retail properties (59 completed shopping malls, 27 more under development) across 48 cities in Singapore, China, Malaysia, Japan, and India with a total property value of approximately S$20.3b (US$14.4b) and total GFA of approximately 66.5m sf. CMA’s effective interest is approximately S$7.0b (US$5.0b) in property value as of 30 Jun 09. Its pro forma net asset value is approximately S$5.3b (US$3.8b) as of 30 Sep 09.

CMA has an integrated shipping mall business model encompassing retail real estate investment, development, mall operations, asset management and fund management capabilities. Upon listing, CMA will be one of the largest listed “pure-play” shopping mall owners, developers and managers in Asia by total property value of assets and by geographic reach (number of malls and cities).

CMA’s principal business strategy is to invest, develop and manage a diversified portfolio of real estate used primarily for retail purposes in Asia as well as to strengthen its market position as a leading owner, developer and manager of shopping malls in Asia. CMA aims to maintain a balanced real estate investment portfolio of predominantly income producingshopping malls in the more developed Asian countries, such as Singapore, Malaysia, and Japan to provide income stability while growing its portfolio of operating shopping malls and retail properties under development in the emerging markets of China and India, as well as selective developments in Singapore and Malaysia. When suitable opportunities arise, CMA intends to extend its portfolio to other Asian markets where it does not presently operate.
-UOB Kay Hian
There is a lot of hype surrounding this IPO, and there could potentially be a trading signal on this. Capitaland will be an interesting watch from here also. I did not apply for the IPO, but i will watch how this share trades after its debut.

Stock pick

Ying Li-

Entry on a break above 0.635, cut loss 0.61. Gapped down last week on rights issue anouncement. Gap cover trade.

Dow Jones

Update from yesterday-

Resistance at 10435. A close above that is the signal for more upside. The odds still favour a downside from here. As of last night the closing is sitting precariously on the short term uptrend support. I shall wait for the selling to end first before my next trade.

Turning cautious

Best to stay sideline for the time being. Despite Dow closing +30 yesterday which exceeded expectations, STI is trading lower since 9am. Well, if there's no correction then STI can't head higher. Now is to let the market do its thing.

Dow jones

DJI-Correction imminent.

Currently trending up, with the CCI and RSI values hitting a high. Risk reward is unfavourable for a long position in US stocks at this point in time. If the first support holds, there may be more upside for the time being. If it fails a correction may lower the index to 10717

This will be a good level for bulls to load up for the next leg. If indeed the economy is headed for recovery, the market should not be trading below the 2nd support for this cycle. My 2 cents worth.

Fundamental Analysis-part 1

Just some thoughts and pointers of mine that i picked up on fundamental analysis. I shall start with the basics here, before zooming in on the company financial report, be sure to first look through the company website. My application of FA is meant for a longer term horizon over 3-5 years, so the expectation is for positive growth in share value/dividend yield over the period.

My experience is that it is quite impossible to spot gems that will make a big move within the week just by looking at the company report. Bear in mind by the time the public gets to read the report, the people in the know would have already reacted based on the knowledge they had before hand. The company management, finance industry, media and professional traders. The public is the last layer that the information goes to. I don't think it is sound to invest on a short term expectation based on FA.

I would review the company's strengths, find out which sector they are exposed to, which geographical regions that they are operating in. Compare that with market trends and research. Perhaps Asia is the region that growth is likely to center in, it will make more sense to find a company that deals within the region. Find a sector that show potential, oil and gas, technology, banking etc. Find out the edge or unique feature of the company within the industry. Is it an industry leader?

Once these groundwork are done, i will zoom in on the company report.

CapitalmallAsia IPO

HONG KONG (Dow Jones)--CapitaLand Ltd. (C31.SG) will raise S$2.5 billion from an initial public offering of its Asian shopping mall unit, a person familiar with the situation said Tuesday.

CapitaMalls Asia Ltd.''s IPO has priced at S$2.12 per share, the person told Dow Jones Newswires.

A person familiar with the situation told Dow Jones Newswires earlier this month that the malls unit planned to offer 1.165 billion shares with an indicative price range of S$1.98 to S$2.39 a share.

CapitaLand Chief Executive Liew Mun Leong told Dow Jones Newswires Friday that he hopes to list the unit by the end of the year.

CapitaLand requested a trading halt of its shares on the Singapore Exchange earlier Tuesday pending an announcement related to the IPO. It didn''t give any other details.

CapitaMalls Asia will have a portfolio of 86 retail properties worth S$20.3 billion spread across five countries in Asia.

CapitaLand said in a preliminary prospectus that JPMorgan is the sole adviser on the deal. The joint bookrunners are JPMorgan, DBS Bank, Credit Suisse and Deutsche Bank.

Stock Pick


Keeping this guy on the radar. Potential long candidate.

Stock pick

China Milk
Momentum is changing, and today it convincingly broke out of resistance at 0.335. Also broke out of downtrend resistance. Indicators are crossing up, cutloss at 0.295.

Stock pick

Capitaland is a good long candidate from here. Tested 4.03 and supported above the level. A breakout from the ascending triangle will signal a breakout. First target is to take out previous high at 4.46