The Weekly Review: Stirred But Not Shaken?

After reaching a resistance point, the EUR had a big fall. But I it seemed to be supported at the last pinbar support. If it bounces back it will be a buy. The Aussie has been quite edgy as it became very volatile, however it seemed to be trending up slowly. I will probably stay away from trading AUD/USD. A good buy will be AUD/JPY, as it continues to be trending up. USD/JPY is consolidating now. USD will continue to gain strength overtime. The reason for the consolidation is because everyone is waiting for the decision on Fiscal Cliff.

A bullish pinbar has formed in GBP/USD. It is a very likely buy as the weekly timeframe is favorable for more upside.

US Stocks

The Dow continues its trend up. It has broken up. So it is likely it will continue its trend till news of Fiscal Cliff decision.

Interesting news is that Apple stock slumped 9%, forming a "death cross", which is when the 50-day moving average cross under 200-day moving average. To technical analysts, it means that it is a bearish indication telling you to sell. A "golden cross" is the opposite, indicating a long term bullish buy. This indicator is usually used for US stocks which has a longer history period.

Will Apple fall further?

Singapore Stocks

Singapore Stocks have been much in consolidation for many weeks. Other than this, property stocks have continued to be strong. Kepland, Captialand and CapMallsAsia still showing strength and making new highs. Commodity stocks continue to be weak such as Noble Group, Wilmar and Olam.

Olam has been in a fix lately because of Muddy Waters announcement that the company is having a big risk of debt problems. Before the news, there have been already selling of this stock (Must have been Muddy Waters). Simple technical analysis with a good stop loss will help to minimize your losses in this stock. The lines I have drawn is a pattern which is the underneath forms a increasing support. However, the support broke which the stock made a continuous sell even before the announcement of Muddy Waters. It was probably this period Muddy Waters was making the short selling. BBs are smart and they soon followed. Later the stock bounced back strongly cause of Temasek buying and short covering. Then things became complicated.... So I suggest stay out of Olam till things are clear again.