This blog is not associated with Phillip Securities Pte Ltd or any other entity in the Phillip Group of Companies (collectively, the "Group"). Any views, opinions, references or other statements or facts provided in this blog are personal views of Robin Ho and are not supported, sanctioned or endorsed in any way by the Group. Disclaimer: This chart is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. It does not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or invest in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein are suitable for you. The information and/or materials are provided "as is" without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.
Wednesday, March 22, 2017
On 28 Feb this blog said that Dow could be close to its peak and on 2 Mar Dow had in fact hit its highest point at 21180. Dow fell 237 pts to 20668 on Tuesday, its biggest decline since Trump election. Going forward Dow will continue to trend downwards with supports at 20275, 20090, 19900, 19723 and 19170. Traders are beginning to doubt Trump's ability to fulfill his election promises and they will be watching Trump's attempt at congress to repeal Obamacare. Any mishaps in Obamacare repeal effort will cause more selling in the days ahead. Traders also know that the introduction of Border Tax and Infrastructure stimulus will have to wait for the outcome of Obamacare repeal. Traders will likely run out of patience and it could trigger more selling.
Tuesday, March 21, 2017
Heading skyward on lithium play. Company last reported promising presence of high grade lithium deposit drove the price from 0.2 to 0.245. Today the price broke the last high of 0.245. The next catalyst for this stock will be news of off take deals size. A sizeable off take deal will give analyst some tangible revenue base to value this stock and kick off the lithium product process. A big pre order off take contract can drive the price to 0.36.
Monday, March 20, 2017
The Dollar Index pulled back from 104 to 100 after Fed reiterated 3 hikes for this year on 15 Mar. However, this blog believe the medium term target of 106 remains intact following Nov 2016 breakout from 2015-2016 trading range. However a break down below 99 would imply that the breakout was not genuine.
Friday, March 17, 2017
On 28 Feb, this blog warned of Dow peaking from analysis of Dow's trend cycle. Perhaps another sign of impending correction is seen on performance the Russell 2000 index of small cap stocks. They have stopped outperforming the S&P, the Russell index has risen 1.9% so far in 2017 compared to 6.5% gain in S&P.
Thursday, March 16, 2017
Company announced 10 to 1 share consolidation frightened traders into a knee jerk sellout! At the end of the day, it looks like traders got tricked, the BB scooped up the share on weakness and closed it at today high. The short term Price Action is pointing to more upside in the short term. It will be met with resistance from 0.22 to 0.225. A convincing break above 0.225 will signal strong underlying strength and upside to 0.255.