News dims hopes of aggressive Fed rate cut, sending Singapore: STI Index (.STI) down 32.58 points
Local shares had only one way to go yesterday after the buoyant United States jobs report last Friday undercut hopes for an aggressive interest rate cut later this month.
Disappointed traders sent the Straits Times Index (STI) tumbling 32.58 points or 1 per cent to 3,334.23 – an outcome mirrored in Australia, China, Hong Kong, Japan, Malaysia and South Korea.
Vanguard Partners managing partner Stephen Innes noted that after the strong jobs report, “there were some concerns that (Fed) chair (Jerome) Powell could walk down some of the market aggressive Fed rate cut pricing, and this too is having a significant impact on the investor psyche”.
Asian indices were also weighed down by “escalating trade friction between Japan and South Korea, not to mention the monumental slide in Samsung’s profits”, Mr Innes added.
Trading volume here clocked in at 1.12 billion securities worth $1.06 billion, with losers trumping gainers 306 to 132, while 25 of the STI’s 30 components closed in the red.
Singtel, down 2.3 per cent to $3.48, was the benchmark index’s most active with 30.8 million shares traded.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 3,276.04.
The projected upper bound is: 3,407.38.
The projected lower bound is: 3,260.44.
The projected closing price is: 3,333.91.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 32 white candles and 17 black candles for a net of 15 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 57.0260. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 60.42. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 14. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 22 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed down -32.580 at 3,334.230. Volume was 14% below average (neutral) and Bollinger Bands were 31% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,343.99 3,256.82 3,189.63
Volatility: 12 14 15
Volume: 229,720,176 215,045,632 214,052,144
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
STRAITS TIMES is currently 4.5% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 14 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.