On Monday 22 Jun 2020 9.46pm, I emailed Clients my latest post titled 'The Bulls just wouldn't let up the Ghost!'.
Below is the full transcript of my write up:
'Dear Clients
For the longer term investors:
I remain the view that come 3rd quarter 2020, we are likely to see a bigger pullback in the US markets due to the negative seasonality effects which will likely drag global markets down with it. That will be the good time to buy for the longer term. For SG-centric investors, I've in mind a counter that you can consider to add to your portfolio which I believe will improve your portfolio performance by a good shot. Feel free to drop me a line to find out more.
For the shorter term traders:
If you have been following my work, you will know how I use the Bollinger Bands & EMAs (exponential moving averages) to gauge whether price action is leaning towards bearish or bullish bias.
I must admit the S&P500 Index (SPX) price action is STILL holding above its 50 & 200 EMA and is also still in the upper segment of its Bollinger Bands (BB) midpoint line.
As the title aptly says 'The Bulls just wouldn't let up the Ghost' - if we do have a convincing breakout over the recent high at 3233, I'm afraid the bears may have to suffer yet another blow.
Now if the SPX does break out to the upside again, it is likely that our Straits Times Index (STI) may follow suit to my original target zone of 2871-3052, being the 61.8-78.6% Fibonacci retracement levels. (Pls see my 8 Jun post on STI)
Conversely, SPX breaking below the 50 & 200 EMA & its BB midpoint line will potentially open the 1st trap door to the downside which will pressure STI as well.
Critical juncture - short term traders, watch your front!
Live Long & Trade Well. Thank you & rdgs Thomas Ng, CMT Principal Trading Representative 首席股票经纪 www.thom-ng.com #plsreaddisclaimer #chartforillustrationonly #spx21jun20 #sti7jun20