Gold Update

Price of commodities has soften a bit and gold has not been spared the downward move.

streetTRACKS Gold ETF has moved down from a its July high and is now below its 50 and 200 day moving average. It is currently in “Distribution” mode and looks like to move into “Bearish” phase.

It has stayed in “Distribution” mode for 14 days in a row, not a good sign for the Bulls.

Singapore Market

Congratulations to the Singapore Women’s Table Tennis Team for winning a Silver medal. The nation is rejoicing from the medal win but stock traders are experiencing a mood of a different kind.



The Singapore Market is going through a difficult patch for the Bulls. Trading volume has been on the decline and there are no signs that the market is going to rebound strongly anytime soon.

The phase chart is still showing a “Bearish” trend. Maybe when it comes to the last quarter, which is traditionally good for the stock market, the market will rebound. But at this moment, those who want to enter the market must trade with caution.

The 50 day moving average is at 2926 and 200 day moving average is at 3140.

US Market

Dow ended a volatile week on Friday. The index was up above 400 points for the week.

The phase chart is showing a recovery for the Dow since it moved into “Bearish” mode on 21 May 08. It closed above the 50 day moving average for the first time in 55 trading days. The 200 day moving average is now at 12512.

It is possible that this may be a false breakout but the “Bears” will definitely be on their toes this week to see if they need to cover their positions.

Shanghai Market

The Shanghai Market tested a low of 2566 on 3 July before rebounding to 2952 on 10 July. The index closed at 2801 on Friday. It looks likely to test its 50 day moving average which is at 2953.
The index is still in “Bearish” trend. If it can gather enough momentum to break the 50 day moving average, it will move into “Recovery” mode. The index entered “Bearish” mode on10 Mar 08 and has stayed in this mode for 99 trading days.

Let’s see whether the Olympics fever can help to propel the market higher next week.