Remember I said this on 23-Oct "Hope that the specialists do not create another set of gaps while they are patching those upper side gaps." http://achua138.blogspot.sg/2014/10/gaps-are-trend-enemy.html
In the past, STI used to follow the US market. However, today STI doesn't really follow the US market anymore especially on the upside. As we have this second brother which is the China market. But look at what happen to the China Shanghai market right now. It has gone up 40%. US kept hitting new high. Europe, after the correction it has turned upside Nikkei, trying to test its Y2007 high 18,300. Where else STI.......???? Look at the last 3 days candles, what happened?
Some blamed the oil and gas counters? Well, in a way it was true. Investors were dumbing away the oil and gas stocks. Everyone are worry about the crude oil price. Again each time, we have the kind of scenario, we will have those so called expert came out to say this and that. some said the price will go down to $xxxx, some said all this is because of the Opec trying to punish the US.....nevertheless the most common comments that we heard were demand against supply.
Let's look at the production cost for the global crude oil. It cost around $30 to $60, depending on the location, water level.......in short the difficulty in pumping out the oil from the ground. The cheapest of course, oil at on shore and countries in the middle east. So will oil price fall below $xxx? Same as gold, in a way "no" but from traders and investors points "yes'. Read this http://achua138.blogspot.sg/search/label/Gold and you will understand why?
Let's come back to this topic, what happen to the crude oil. Supply against demand....as what those experts said? If we go in depth, you will realize all these are artificial, it is all about polite. Because of ISIS, because of the transaction against the Russia. So, when will the game end? As long as the involvement of polite, it won't be easy to.........Just like US QE. If we look at the past, each time the QE end, market dropped. But this time, it didn't. Why? Because the timing of stimulus from the Europe, Japan and China. A lot of expert said the US will raise their interest rate by 3Q2014, 4Q2014........Till today it didn't? Why? As I said before, Yellen knows the consequence of raising interest rate. Furthermore Europe was cutting their interest rate and China was lowering their cutting interest rate too. So will US going to raise interest rate? Yes, provided.........remember what I mentioned before.
STI definitely needs a push from the oil and gas counters like Keppel, Sembmarine...... Oil and gas stocks have came down on average 40%. Majority of the retail investors don't make money because they use to buy at high, they follow the crowd. For professional investors and traders they trade/invest differently. When the crowds sell, they start to look for opportunity. Use both fundamental and TA to look for opportunity.
In the past, STI used to follow the US market. However, today STI doesn't really follow the US market anymore especially on the upside. As we have this second brother which is the China market. But look at what happen to the China Shanghai market right now. It has gone up 40%. US kept hitting new high. Europe, after the correction it has turned upside Nikkei, trying to test its Y2007 high 18,300. Where else STI.......???? Look at the last 3 days candles, what happened?
Let's look at the production cost for the global crude oil. It cost around $30 to $60, depending on the location, water level.......in short the difficulty in pumping out the oil from the ground. The cheapest of course, oil at on shore and countries in the middle east. So will oil price fall below $xxx? Same as gold, in a way "no" but from traders and investors points "yes'. Read this http://achua138.blogspot.sg/search/label/Gold and you will understand why?
Let's come back to this topic, what happen to the crude oil. Supply against demand....as what those experts said? If we go in depth, you will realize all these are artificial, it is all about polite. Because of ISIS, because of the transaction against the Russia. So, when will the game end? As long as the involvement of polite, it won't be easy to.........Just like US QE. If we look at the past, each time the QE end, market dropped. But this time, it didn't. Why? Because the timing of stimulus from the Europe, Japan and China. A lot of expert said the US will raise their interest rate by 3Q2014, 4Q2014........Till today it didn't? Why? As I said before, Yellen knows the consequence of raising interest rate. Furthermore Europe was cutting their interest rate and China was lowering their cutting interest rate too. So will US going to raise interest rate? Yes, provided.........remember what I mentioned before.
STI definitely needs a push from the oil and gas counters like Keppel, Sembmarine...... Oil and gas stocks have came down on average 40%. Majority of the retail investors don't make money because they use to buy at high, they follow the crowd. For professional investors and traders they trade/invest differently. When the crowds sell, they start to look for opportunity. Use both fundamental and TA to look for opportunity.
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