Search
  • whatsyourtradingangle

First sign of crack?

Updated: Feb 6

On Monday 1 Feb 2021 10.55pm, I emailed Clients my latest post titled 'First sign of crack?'.

.

'Dear Clients

.

Hope the first month of 2021 has been awesome to you! . Let's jump straight to see how Mr Market (S&P500 Index) is behaving right now. . From the attached Chart, it seems that the first major crack of the current uptrend may have appeared. As you can see, bullish price action has so far reached about 75% of my original (green) Cup & Handle target of 3969 (or 60% of my Pennant target) since my 14 Dec 2020 writeup first appeared: (Click to see: https://www.thom-ng.com/post/mid-long-term-bullish-but-that-put-call-ratio-reflects-a-crowded-trade)


If a correction does kick off here, a reasonable support zone is at the 3477 - 3627 zone, being the 61.8% & 38.2% Fibonacci retracement zone (not shown). A preferred area of confluence is the 3550 - 3590 support zone (pink rectangular bar) because this is where the original bullish price action took off from. Resistance turned support, so to speak. Also the 3550 level marks a ~8.3% drawdown from SPX all time high of 3870.9 which to me is, well, a garden variety correction. . Now, can it get worse than that? Of course it is possible. Technical Analysis is simply a probabilistic study of crowd behavior and you should always leave 'certainty' at the door. But I reckon let's take it one step at a time. . At the end of the day, I'm net bullish on SPX and it is likely we still have a date with my higher targets (Cup & Handle OR Pennant) as shown on my Chart.

.

New info added on 6 Feb 12.10pm: As of Friday 5 Feb closing, SPX has achieved a new all time high & price action has crawled back decisively into the upper segment of Bollinger Bands (not shown). The immediate 'crack' is thus negated & the Bulls still have the ball in their court.. . . On 20 Jan 2021, through my bi-weekly Thomas Ng’s Investment Ideas Broadcast Group, I whatsapps the following message to my followers: . 'China Literature (HK:772) - Mkt Cap $8b (note high growth tech firm, still loss-making, no PE nor div yield). China Literature is 57% owned by Tencent and it was spin off from Tencent in 2017 at IPO price of HK$55. It generates its revenue from online reading through its self-owned platform products. You can refer to the Bloomberg article I'm sending next for its growth strategy and how its management plan to monetize their businesses. Since listing, it had continued to grow its revenue at an annualized rate of 46% p.a. Price had since corrected to better match its valuation since its meteoric rise on the 1st day of listing. More recently, since hitting near $70 in Oct '20, its share price had corrected to the support of its weekly chart price channel. With KST still indicating uptrend momentum and %R showing some short-term bullish divergence, investors who wanted to invest into China Lit can consider adding some position into this growing company.' . Since my 20 Jan broadcast on China Literature, it is up 43% from close to high in 7 trading days! (see attached Chart)

If you wish to be in my Whatsapp Broadcast Group, pls email me with subject heading 'ThomasIIBG / Client or Non-Client / Mobile no / POEMS acc no.'. . Live Long & Trade Well! . Thank you & regards . Thomas Ng, CMT Principal Trading Representative 首席股票经纪 www.thom-ng.com . **By emailing me as per above, you'll have indicated that you would like to be in my Email/WhatsApp subscription list and/or for me to contact you for potential marketing, advertising and promotional purposes, overriding any DNC registration. . #plsreaddisclaimer #chartforillustrationonly #spx1feb21 #BTFD #bullmarket #ThomasIIBG #befluid #wytant #livelongandtradewell'

73 views0 comments

Let's Talk.

PhillipCapital
250 North Bridge Road
Raffles City Tower #06-00
Singapore 179101

Email: thomasng@phillip.com.sg

  • LinkedIn
  • Facebook
  • White Instagram Icon

*By providing us your personal data (i.e. name, email address and phone number), you acknowledge and consent to our collection of your personal data for the purposes listed below:

  • Sending you marketing, advertising or promotional materials related to the content of this website, whether by call, text or email;

  • Provision of products & services which you have requested for.

Please note that you are entitled to withdraw your consent for the collection of your personal data at any point in time by providing a notification to thomasng@phillip.com.sg.

 

The information contained in this website is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this website are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

© 2018 by Thom Ng. Proudly created with Wix.com