ST Engineering: Elliott Wave C Down!

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ST Engineering broke down from the Rising Wedge and is currently testing 200D SMA. If this 200D SMA support is broken, there will be a huge down side to go base on Elliott Wave pattern (Wave C Down). Sit tight!

2013Aug20-ST Engg-800x600

See last analysis on ST Engineering.

Key Statistics for STE

Current P/E Ratio (ttm) 21.5728
Estimated P/E(12/2013) 20.1990
Relative P/E vs. FSSTI 1.6640
Earnings Per Share (SGD) (ttm) 0.1882
Est. EPS (SGD) (12/2013) 0.2010
Est. PEG Ratio 2.4336
Market Cap (M SGD) 12,606.04
Shares Outstanding (M) 3,104.94
30 Day Average Volume 1,646,100
Price/Book (mrq) 6.8085
Price/Sale (ttm) 1.9539
Dividend Indicated Gross Yield 1.72%
Cash Dividend (SGD) 0.0300
Last Dividend 08/21/2013
5 Year Dividend Growth -0.09%
Next Earnings Announcement 11/07/2013
Continue ReadingST Engineering: Elliott Wave C Down!

Gold Start to Rally?

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Gold Start to Rally? Yes. At least for the short term base on technical analysis because Gold has just broken the previous support turned resistance. Looking at the GLD (SPDR Gold Shares ETF), GLD has broken the $130 critical resistance level and also moving above 20D / 50D SMA. Base on the past few months chart pattern, 20D SMA is a reliable support and resistance moving average line. The price target for this GLD rebound is about $139-$140 region base on 161.8% Fibonacci Expansion Level by mid Oct 2013 (using Fibonacci Fan).

GLD Aug17-2013

Statistically Aug and Sept tends to be bullish months for Gold. See statistical table here. 

  • Gold Short Term Trend: Bullish
  • Gold Long Term Trend: Bearish (200D SMA is still trending down)
Continue ReadingGold Start to Rally?

Caterpillar (CAT) Trade Idea

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Unable to enter any trade base on last trade idea on Caterpillar as CAT did not reach my target entry price. Fortunately the chart presented me another entry level few days ago. This time is a bearish entry when CAT was rejected at 200D SMA resistance and also the Symmetrical Triangle resistance. In addition, the candlestick patterns were shouting LOUD and CLEAR at me with Shooting Star and Bearish Engulfing patterns.

CAT Aug17-2013

Trading Strategy: Short Call Spread Sept 13 85/90

  • Direction: Bearish (Rejected at Symmetrical Triangle Resistance and 200D SMA resistance)
  • STO CAT Sept 13 85 Call
  • BTO CAT Sept 13 90 Call
  • If  the  resistance (about $87) is broken, close both legs to cut loss.
  • Entry Price: $86.22
  • Breakeven Price: $87.01
  • Max Profit: $603
  • Max Loss: $897
  • Reward vs Risk: 0.67
  • Probability Price Below Breakeven: 65%
  • Exit Target: CAT price near to the Symmetrical Triangle support about $81-$82 region

Chart from thinkorswim, get FREE chart here.

Continue ReadingCaterpillar (CAT) Trade Idea