Asia Stock Market Index Futures

Time To Get Back Into STI?

2007-08-28T17:48:00.000+08:00

Yeah, I think so.

If you were briused by recent plunge in STI due to the sub-prime loan in USA**, then you should be getting back in soon before you missed the ride up to the next all record breaking high in STI.

STI Summary by Yahoo Singapore Finance

Reason being the upside is greater than the downside. The STI might go all the way to 4,000 within this year. And I don't think it will go below 3,000 level again unless something big happen in China or Japan. The STI is now just below the half-way point. In fact, it closed earlier -45, at 3,343.

I reckon both blue chip and small caps will go up for the next 2 months.

Will the STI go up 600 points in the next 2 or 3 months?

**[Update Aug 29, 2007] Sub-prime loans crisis not as bad as thought?

Straits Times Aug 29, 2007

Is STI consolidating around 3,500?

2007-05-18T14:21:00.000+08:00

I hope so! I am still holding on to my Singtel shares, Mediaring, BBR and etc. in my CPF. I don't want it to do a 5,00 points correction within the next 12 months.

STI Summary by Yahoo Singapore Finance

STI has been moving up too quickly over the last 12 months - about 1,000 points!

Consolidating around 3,500 to 3,700 level will be good. It will allow more small cap counters to catch up a bit. I will exit when STI get closer to 3,700 if not earlier.

Now, we are truly in uncharted territory. STI 3,700 is the next level to achieve. However, no one can say for sure it STI will not pull back to 2,850 level. So don't be greedy and be very CAREFUL.

STI breached 3500

2007-05-15T14:31:00.000+08:00

STI closed at 3,501.10 on 14 May 2007. I didn't expect it to break 3500 level so soon. I mentioned in my previous post about 2 months ago on March 5, 2007 that STI would move beyond 3,500 this year - 2007.

STI Summary by Yahoo Singapore Finance

Now, as I write this post, STI has dropped 41 points from yesterday high. So fast profit taking already?

Well, it's always good to take profit.

How Barclay ABN Amro Takeover Deal Affects Asia

2007-04-24T13:23:00.000+08:00

The merging banks will cut jobs in Europe. I think we will see more workers go on strikes in Europe despite it is a good excuse to merge and fire workers. More jobs will go to Asia, especially outsource to India. Singapore may get a slice of the influx jobs from Europe.

I guess this is what's happening... merge the banks, fire some people, transfer key people to work in Asia.

So why is this happening? Could it be the strong euro? Wages in Europe are definitely high when compared with India. Seems like not only Singapore faces low wage competition from India and China.

Still, I think we have a few more good years ahead before the next crisis comes.

Indonesia-Singapore Extradition & Defence Pacts

2007-04-24T12:49:00.000+08:00

Now that the Indonesia-Singapore extradition get out of the way, many people are expecting the sand and granite supply shortage will be solved soon. Construction related counters will continue with their rising trend.

Cheaper Sand and Granite for Construction Industry

Here's what I am HOPING... BBR will go up to $0.40 within next 12 months. Liang Huat will shoot to $0.30 within 6 months. I have vested interest in both these counters. I have been holding on to these construction related shares since 1999. If you have been in the Singapore stock market for that long also, you'll know that I still lose money even if I got what I hoped for!

If you do not have any construction related shares, you may like to start monitoring their movement. The construction industry has started to boom and will continue for at least another 3 to 5 years. With long term plan to use sustainable construction material, structural steel supplier and distributors will have good time ahead and earning for these companies will increase - so will the share price.

Possible Negative Effects of Indonesia-Singapore Extradiction Pact

Now that rich crooks from Indonesia cannot hide in Singapore, they will flee along with their monies. I heard rumors that many Singapore-based banks have millions of dollar of deposits from Indonesia citizens. Some of these monies will disappear, and effects some banks in Singapore. So you still have little time left to exit financial related stock. You may also want to be ready to short the SiMSCI.

Taking Stock: Market Mood Likely to be Bearish

2007-03-05T09:34:00.000+08:00

The STI Taking Stock's indicator is here again!. If you have been following STI Taking Stock column, you'll be amazed how accurate it can be to indicate Singapore stock market sentiment.

So you have to act according to the sentiment and not what the analysts want you to hear.

When Taking Stock's Mood is Bearish, Start Buying

Now, it's time to get ready to start buying. The STI has suffered a large drop last week and many traders are still licking their wounds.

STI Summary by Yahoo Singapore Finance

If you would have been taking profit and selling since my last post, you will be in a good position to start accumulating at good prices soon or even now.

The STI may drop futher to break the 3,000-point mark. However, if you do not monitor the market daily, you may just want to start accumulating now for the next high - beyond 3,500 within this year.

STI Money: Bourse Set for Further Run-Up

2007-02-12T09:56:00.000+08:00

Today's Straits Times Money section on Taking Stock has this headline:

Bourse set for further run-up

I noticed after monitoring Money page headlines for the past 4 years, when the newspaper said it is going up -- it's time to Take Profit.

That means you can get ready to sell on SIMSCI. The big boys should be taking profit soon, if not already started.

Look at the STI daily chart for the last 6 months, it is doing pretty well. However, look closely what happened over the last 2 weeks. The STI index has been hovering around 3,200. I suspect a correction is due soon. And with the Chinese New Year holiday coming up, the STI will traditionally take a break and cool down a bit. Not only the big boys will take profit, the bigger retail traders will also take profits to have a happy Chinese New Year!

In fact, as I am writing this blog, the market opened down: STI nearly 50 points and SIMSCI 5 points. So be nimble and be decisive with your profit.

STI broke 3000 and Time to Take Profit

2007-01-05T14:47:00.000+08:00

The writing is all over the place or rather all over the media - in the newspaper, on the radio and the TV. All the "analysts" said the momentum will carry the STI higher.

First, let me apologize for not posting to this blog for over a year. Well, expended all my bullets when the market was moving side way. So I could only stay sideline and watch STI broke new high.

When STI reached 2500, it was the first level to celebrate. Because, that's the time to take profit and wait fot the market to "correct". That happened during the 3rd quarter of 2006. In fact, I was speculating that the STI will go higher with increase volume and more retail investors coming into the market. I actually register the domain name, Singapore Stock Trading.com

Now, STI is now above 3,000, it is the time to take profit, take a break, go on a vacation and wait for the actions to unfold. Let it correct before going for 3,600.

If you are uncomfortable to sell your stock holding now, you may consider to take this strategy. Sell your stock, take profit and use some of the profit to long SiMSCI futures.

Yes, I realize that it would be more "fun" using some of your profit in your stock trading to speculate in the index futures. However, to do this you need to day trade and monitor the market every day.

Equity Index Futures Trading

2005-05-24T16:26:00.000+08:00

Just learn that it is more appropriate to use the term equity index futures rather than stock index futures. I noticed this change on the CME website not too long ago. So I am phasing out the use of "stock index futures" too. And on this blog, we discuss the 2 main equity index products traded on the Singapore Exchange: Nikkei 225 Futures and SiMSCI Singapore Index Futures.

If you've been following this blog, you'll notice that I have not been posting any trade on either of the above indices futures. Both markets have been moving sideway for many months now. And since I attempted to post comments on longer time frame trades - my trades had performed miserably. The lesson I learnt was that my judgement on the placement of stop was POOR! So better for me to shut up and observed the market - let the market tells me what it's doing instead of me guessing. Looking back, I think I did the right thing to stay out of the market and focus on my other business - search marketing.

My new Stock Market Investment website

2005-04-05T15:12:00.000+08:00

I have decided to start a website to provide information on stock market investment. This is my first website on this topic even though I have created several financial related websites on various other type of investment methods.

This website will focus on stock market quotes and data for technical analysis techniques suitable for investing in the stock market. I reckon it will take several weeks for me to research on this topic and related fields for valueble content to be published on this website.

SiMSCI - Time to Take Profit

2005-02-08T01:23:00.000+08:00

Is the SIMSCI run up to the Chinese New Year going to abate soon? If you have been holding a long position from the 250 level and below, you may just want to take profit before the CNY holidays. It is expected that SiMSCI volume will be thin on Friday when market reopen - most traders are still on super long weekend holidays.

I still believe that SiMSCI will do a "10 to 15 points" correction before it can move above and break the 258 level. Otherwise, it may have to spend several weeks or even months ranging between 249 and 254.

Both Nikkei and SiMSCI may track the Dow

2005-01-24T20:19:00.000+08:00

The Dow Jones index seems to be heading for further correction. And I was wrong about the uptrend on the SiMSCI and Nikkei over the past 2 weeks. I am out of SiMSCI and cut loss at 248.5.

The Singapore SiMSCI index may just track the correction on the Dow and falls toward the 242-243 levels. The upside for SiMSCI is weak and the resisitance is around 250. I may turn short on the SiMSCI for daytrade over the next 2 to 3 days.

As for the Nikkei 225, I will be monitoring closely and wait for good level to buy.

Uptrend to continue for SiMSCI

2005-01-20T01:25:00.000+08:00

The SiMSCI looks like gathering strength around 250.0 level before resuming the uptrend. Overall, the trend is still up and I am looking to buy around 249.8 to 250.5 and I will place my stop at 248.3.

Nikkei 225 trend is pointing up too. I will watch the US market closely to decide on my setup for Nikkei.

Bursa Malaysia fka KLSE

2005-01-14T22:36:00.000+08:00

Bursa Malaysia is the new name for Kuala Lumpur Stock Exchange. Didn't know when the name changed but it had to be recent. Noticed from one of my server log that people are searching for Bursa Malaysia and landed up on the KLSE page.

It will probably take some time before people get comfortable with the new name. Does the word "bursa" means "exchange" in Malaysia?

SiMSCI and Nikkei 225 stalling?

2005-01-12T20:30:00.000+08:00

Over the past 2 days, both SiMSCI and Nikkei 225 were not moving up as we thought it might in our previous post. Today's SiMSCI low was 247.6 and closed at 248.2. Time to be very careful with your long positions. If you are still in profit, you may want to take profit now.

Why do I say that? The DOW is turning down. No sign for bullish view.

Wait for the market to tell you what to do. Wait...

Both Nikkei 225 and SiMSCI look strong

2005-01-08T16:32:00.000+08:00

First, let's look at Nikkei 225 cash index. Over the past 2 week, the Nikkei had been doing quite well. The trend is bullish. It has made a 3 month high and broken the previous high of 11,410 made on the 7 Oct 2004, refer to candlesticks chart below. If you've studied the weekly chart, you may come to the same prediction that I have - the bull is climbing up to 12,000 level.

Next, let's look at SiMSCI. Since the last post, the SiMSCI has again made new high. The previous prediction on the SiMSCI's trend was right - it was going up. Before we make further prediction as to where SiMSCI is heading, let's take a look at the higher time frame - the weekly chart.

The trend is obvious, isn't it? So is it going to the moon?

Well, just be careful at these levels: 253.0, 255.o and 258.o. The immediate support is at 248.0, so I will definitely put a stop there for any new long position. So if you have bought at levels below 248.o, good for you.

Bullish SiMSCI

2004-12-22T10:15:00.000+08:00

The SiMSCI Singapore Free Index has been moving up over the past few days after a plunge to 237.1 level on 9 Dec 2004. This morning it broke the previous high of 246.7 on 3 Dec 2004.

Is this "window dressing" for book closing?

Today, SiMSCI opened at 246.9, went up to 248.0 and closed at 245.7. Looking at the candlestick, one would suspect that the bull may be losing steam. If the support at around 245.0 holds for the next 2 days then the uptrend may continue otherwise the next suport is around 242.8. This will be a good entry point for a long position.

SGX announces increase in e-Nikkei 225 Futures on SGX QUEST

2004-12-11T11:22:00.000+08:00

The volume of the SGX Nikkei 225 【日经指数】 contracts traded electronically during the regular Japan stock market trading hours on 1 November was 2,778. On 8 December, the corresponding volume set a new record high of 29,488 contracts. The average daily electronic trading volume of Nikkei 225 contracts from 1 November to 8 December during the regular Japan stock market trading hours is 12,071 contracts.

The electronic trading volume of Nikkei 225 Futures and Options now regularly exceeds 50% of the total SGX Nikkei trading volume in the last two weeks.

SGX spokeman said, "We are encouraged by the response on SGX Nikkei 225 contracts. With the availability of the SGX Nikkei contracts on the electronic trading platform during the regular Japan stock market trading hours, we hope to reach out to those who trade derivatives products electronically and expand the usage of SGX Nikkei contracts as an effective trading and risk management instrument among global traders and investors. We are confident that with the robustness of our new trading engine and the various initiatives, the Electronic Nikkei 225 contracts will continue to grow strongly."

Notes:
Electronic Trading Hours for Nikkei 225 Futures and Options
The Nikkei contract is available for trading on the SGX QUEST from 7.45 am to 10.15 am and 11.15 am to 2.30 pm Singapore time. It will therefore open 10 minutes earlier and close five minutes later than the open outcry market.

SGX QUEST
SGX QUEST is the world's first integrated trading engine for the exchange's securities and derivatives market. It is a new trading platform that supports a host of new products on an electronic platform and sophisticated trading strategies. SGX QUEST offers SGX a platform for global connectivity and a broader reach to market intermediaries and investors. SGX's progress towards introducing a wider range of electronic-based derivatives products was enhanced with the launch of SGX QUEST in its derivatives market on 16 August 2004.

My thoughts on SiMSCI and Nikkei 225

2004-12-09T09:40:00.000+08:00

I was quite surprise to see this blog being ranked in the first page of Yahoo search for keyword "index futures trading". And then this thought came to mind - why not start writing my thoughts of SiMSCI and Nikkei 225?

To start with I will do a weekly updates on these 2 markets. Instead of daytrading, I will position trade using both technical analysisand fundamental analysis. I am not a technical person and use simple candlestick charting and fibonacci levels. Price action and momentum are things that I am familiar. As for fundamentals, I monitor the economic indicators and following USA and Japan economies closely.

To make it interesting, I will allocate US$20,000 as my trading capital and I will post both my good and bad trades here.

Futures Trading

2004-07-26T22:03:00.000+08:00

Trading futures can be done from the privacy of your own home. It can be done from anywhere for that matter. The rise of technology has made it easier than ever to enter today's financial markets.

It has been proven that good systems work. With the right system, trading will become second nature to you. The economy might be down, but a good system works in all economic climates. People are making lots of money even during times like these. No longer will you have to worry about your financial future.