TradeVSA Digest Week 6 Jan 16, 2019
Editor Commentary:
KLSE Market Update
Bursa Malaysia KLCI Index
On 2019-01-14, KLCI is trading at RM 1676.16 and change %
from last bar was -0.41 %, ( -7.05, RM 1683.22). And its also 3-Month low. This market condition is considered to be bearish for index KLCI.
Good news, KLCI is in GREEN HeatZone. This mean it’s trend may still be UP or LIKELY continue to go Higher. Wait for bar confirmation like Line Change (LC) for trend continues @ RM 1687.13 or higher, with Immediate Stop Loss (if trend reversal) @ RM 1667.83 or lower for KLCI.
Be Careful, there’s increasing volume to downside for stock counter KLCI . This market is moving sideway prior before 2019-01-14.
SGX Market Update
Straits Times Index
On 2019-01-14, STI is trading at 3173.46 and change %from last bar was -0.78 %, (-25.19, 3198.65). And it’s also 3-Month high. This market condition is considered to be very bullish for index STI.
This market is LIKELY moving from Stage 1: Accumulation to Stage 2. Mark-Up. STI is in GREEN HeatZone. This mean it’s trend may still be UP or LIKELY continue to go Higher. Wait for bar confirmation like Line Change (LC) for trend continues @ 3209.65 or higher.
DJIA Market Update
Dow Jones Industrial Average (DJIA)
On 2019-01-14, US DJIA is trading at 23909.8 and change % from last bar was -0.35 %, ( -86.10, 23995.9). And it’s also 3-Month low. This market condition is considered to be bearish for index US DJIA. This bearish condition is despite, US DJIA has strengths in the background in
the last 30 bars. This market is getting more bearish in the longer term. THINK TO SELL or turn SHORT!
US DJIA is in RED HeatZone. This mean it’s trend may still be Down or LIKELY continue to go Lower. Wait for bar confirmation like Sell-Off (SO) for trend continues @ 23301.6 or lower, Or Line Change (LC) for trend reversal @ 24014.8 or higher for US DJIA.
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Weekly Market Report – 12 January 2019
Diversify to Manage Risk
The saying “Never put all your eggs in one basket” is nowhere more true than in the world of stock market investment. Diversifying spreads the risk among a variety of stock picks, cushioning the blow of losses in any one stock market investment. Investors old and new can be tempted to go for that one big trade, but this is almost never wise stock investment advice.
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WHY DOES VSA WORK?
The basic idea is that the public can only make money from the markets if we understand what the professional traders are doing. And professional traders are not small players. They play big.
Hence, they leave their footprints in volume data. When the professionals are active, the market shows high trading volume. Conversely, when the market volume is low, the professionals might be holding their horses.
It follows that in order to get a sense of what the big guys are up to, looking at just price action is not enough. We need to look at price together with volume.
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