Weekly Inter Market Analysis Nov 6-2016

See previous week Weekly Inter Market Analysis.

Original post from http://mystocksinvesting.com

SPY (SPDR S&P500 ETF)

SPY has broken the resistance turned support zone. Currently SPY is testing the 200D SMA support. Keep an eye this coming week (also the US Presidential Election week) to see whether this 200D SMA support hold.

  • Resistance turned support zone: 211-213 Broken
  • Rising Wedge immediate support: about 210 Broken
  • 200D SMA support: about 208.5 Testing
  • Previous Head and Shoulders neckline support: about 204.

spy-nov-6-2016

VIX

VIX spiked to 22.5 when getting nearer to US Presidential Election day. Stock market is expected to sell down if Donald Trump wins.

vix-nov-6-2016

 

Sector Performance (SPDR Sector ETF)

  • Best Sectors: None
  • Worst Sector: Technology (XLK)  -2.66%

sector-performance-nov-6-2016

SUDX (S&P US Dollar Futures Index)

SUDX is currently retracing back to the support around 127-128. If SUDX rebounds from this support zone, this breakout of symmetrical triangle is valid for SUDX to start a confirm uptrend.

sudx-nov-6-2016

FXE (Currency Shares Euro ETF)

FXE rebounded from the critical support (red zone) and is currently testing the previous wedge support turned resistance.

fxe-nov-6-2016

 

XLE (SPDR Energy Sector ETF)

XLE is currently testing the up trend channel support. Keep an eye on the current support and 200D SMA support.  Coincidentally USO is also trading the support level.

xle-nov-6-2016

 

USO (United States Oil Fund)

USO is currently testing the critical horizontal support and also the symmetrical triangle support. A pause of the recent sell down for USO after forming a long legged doji candlestick pattern. Wait for bullish candle for reversal confirmation rebound from this support level.

uso-nov-6-2016

 

TLT (iShares 20+ Years Treasury Bond ETF)

TLT is currently trading below 200D SMA and forming a Falling Wedge. Technically TLT is trading in a bearish down trend. This means there is a sell off in Treasury Bond. Something for the investors to pay special attention to because it is not normal for both Treasury Bill and Equity sell off together.

tlt-nov-6-2016

 

GLD (SPDR Gold Shares)

GLD rebounded from the 200D SMA support but is currently facing the previous support turned resistance at about 125. GLD has to clear this 125 resistance in order to continue the long term new up trend.

gld-nov-6-2016

 

Next Week Economic Calendar

Key events:

  • US Presidential Election Nov 9 (Wednesday)
  • Crude Oil Inventory on Nov 10 (Wednesday)
  • US Unemployment Claim  on Nov 10 (Thursday)

economic-calendar-nov-6-nov-12-2016

 

See other Events here. http://mystocksinvesting.com/events/

 

Good News in Singapore if you are Holding Aussie Dollar

AUD / SGD has started an up trend after finding a bottom at 0.98282. There are a lot of rooms for AUD to move up against SGD.

  • Good news if you are holding Aussie Dollar.
  • Good news if you are holding any investment in Australia.
  • Bad news if you have children study in Australia.
  • Bad news if you want to travel to Australia for holiday.

aud-sgd-nov-5-2016

The AUD/SGD trend reversal may be telling something:

  • Commodity has bottomed up
  • China economy has bottomed up and recovering. China Manufacturing PMI is on expansion mode now and the trend is up.

 


source: tradingeconomics.com

Summary: Opportunities for investment if you know how to spot them!

 

See other Events here. http://mystocksinvesting.com/events/

What have all the retail investors do wrongly?

Chew Hock Beng

What do you really want as a retail investors so that you can sleep well at night?

Returns. Of course, everyone loves high return on their investment!

In search of such returns, so what do retail investors actually do?

Just do it! Go for return!  

Hence they started trading. From hear-say, they start picking stocks from anyone who has made money, thinking it’s the best stock tips and starting to punt. Hoping these stocks tips could help them to grow and double their wealth within the shortest possible of time. Soon after they started to apply leverage trading which is very likely not suitable for their risk appetite and investing time horizon.

wrong-wayTo make the matter worse, some do not have any ideas what they are invested in. You must heard many times people have burnt their fingers. They invest for the sick of investing because everybody say have to invest. So follow, can’t be wrong.

So it’s your best interest not invest in products you do not understand. And do not invest in “hot picks” or “trendy stocks” just because others are buying them.

In addition, they do not have any specific concrete goal to follow and tracking their progress. No duration to gauge on what kind of returns should be expecting. No yardstick measurement to follow.

It’s always good to understand and find out where is the place where your money could work for you. Setting goal is critical as it sets the direction and provide a path of certainty.

So you can tell that investing is not everything about returns, especially when there so many investment instruments in the market.  Finding the right and suitable tools is important. In fact, handling risk is the important element in investment.

As retail investors have no idea of their risk profile, when market volatility arrives,  they don’t know how to react because they have no idea about their personal risk preferences.   

So what is risk profile?

Knowing your risk profile is just like knowing your personal health condition. Instead of wondering if your body can react to the tough physical training, it’s the same when your hard-earned money is subject to the market stress-test. In fact, it’s putting your emotion to test whether you can take the pressure of the ups and downs of market movement.

So doing a risk profile assessment to understand your risk appetite and risk preferences could be a good step to embark at.  

We will show you at the talk to find out what type of investors are you.

For now, let’s assume you’re balanced risk taker.  So a typical 50% Equity and 50% Bonds portfolio is set up for your profile type. Let’s say the equity market went down by 50%, and Bond market drop by 10%. At this instance, your portfolio is down by 30%, instead of down by 50% if you’re not aware of your risk profile. You can see that such portfolio manage risk and provides diversification. Mostly importantly, it takes lesser time and effort for the balanced portfolio during the recovery market.  

Having the right knowledge and applying it right pays. The last 2 questions could be a useful thought-provoking for you.  

Which group do you belongs to?

And which group do you prefer?

I think the choice is clear.

Events