Stock Market Analysis Aug 23 2016
A good morning to you.
For those who were hoping to see Monday's stock market analysis, I apologize for not being able to make it in time. I was very busy the whole day and had diarrhea and headache by the end of the day. So I could not produce it in time. I was also suppose to come out with the intermarket analysis but I think that will have to wait again perhaps for another day.
Markets have not moved much except oil which has already fallen below the 60 min 20 MA. Those who have read my earlier market analysis would have taken off some profits the moment oil fell below the 60 min 20 MA. 1/3 or 1/2 or 2/3, whatever. But now, with oil neutral in the 60 min charts, bearish in the daily and bullish in the weeklies, it is not a time to enter oil at the moment. We still have to have all 3 timeframes in sync before initiating any new positions in oil. In trading, you will almost always never catch the exact top. Very near to it will be good enough. Those who do not want to sell but wary of a short term drop can hedge them by buying cheap put options especially with the daily chart showing Overbought stochcastics and MACD showing slowing momentum.
For past market analysis, please go to Daily Stock Market Analysis 2016, for a longer term picture of the different markets, please go to Intermarket Analysis Aug 3rd Week 2016.
Well, in summary:
For those who were hoping to see Monday's stock market analysis, I apologize for not being able to make it in time. I was very busy the whole day and had diarrhea and headache by the end of the day. So I could not produce it in time. I was also suppose to come out with the intermarket analysis but I think that will have to wait again perhaps for another day.
Markets have not moved much except oil which has already fallen below the 60 min 20 MA. Those who have read my earlier market analysis would have taken off some profits the moment oil fell below the 60 min 20 MA. 1/3 or 1/2 or 2/3, whatever. But now, with oil neutral in the 60 min charts, bearish in the daily and bullish in the weeklies, it is not a time to enter oil at the moment. We still have to have all 3 timeframes in sync before initiating any new positions in oil. In trading, you will almost always never catch the exact top. Very near to it will be good enough. Those who do not want to sell but wary of a short term drop can hedge them by buying cheap put options especially with the daily chart showing Overbought stochcastics and MACD showing slowing momentum.
For past market analysis, please go to Daily Stock Market Analysis 2016, for a longer term picture of the different markets, please go to Intermarket Analysis Aug 3rd Week 2016.
Well, in summary:
- Major indexes still in daily uptrend. We are bullish in dailies. But neutral in 60 min.
- Some indexes and sectors are forming some bullish patterns in the 60 min but if there is no follow through we continue to be neutral. Especially with markets waiting for announcement from Janet Yellen on Fri. So its not surprising if markets meander again.
- Oil is short term neutral, daily bearish and weekly bullish. No taking or adding long positions yet. Those who are long earlier should have taken off some positions.
- Gold and silver will be meandering a bit because of weekly supply.
Major Indexes
Cup and handle pattern appear quite often in most time frames. For those of you who want to learn more about this pattern, read How To Profit From The Cup And Handle Pattern.
As an oil producing nation and a country that relies a lot on oil, KLCI benefited from the rise in oil and hence the bullish move in the past 2 weeks. However, with oil reaching an overbought level on the daily, KLCI got hit too. I'm no longer bullish on KLCI in the short term. Even if it rises again, there is quite a lot of congestion overhead which will act as a barrier. We will see later if the move have absorbed enough supply to make KLCI go higher but for now, I'm no longer short term bullish on KLCI.
Sectors & Industries
Commodities
