I am having some problem day trading SIMSCI. I should say, it is a little bit difficult to find trading opportunity within the day. First problem lies in volume, for example, in the first two hours of trading today, less than 1000 contracts were traded. Secondly, intraday volatility is not impressive enough to generate attractive potential reward.
I do not have trading idea for SIMSCI yet. Instead, TIMSCI (MSCI Taiwan) futures caught my attention. It is a volatile index, and traded in pretty good volume. Intraday chart looks good with trading opportunities.
Another quiet day for me, watching the market. This month's profit target seems to be too far for me to reach. I am studying and adjusting the figure for next month.
I have decided not to trade today due to some personal commitment in the afternoon session. No short position for SIMSCI was established in ther morning after watching Nikkei making a higher low and failed to form a failure swing in RSI. It is likely to move up and might lead SIMSCI to bounce as well in the afternoon session. In addition, a potential double bottom formation was found in SIMSCI chart as well.
Some charting problems in the early of the week, not a good week with only small gain. I close the week earlier with positive note.
After watching RSI making higher low and 10-min chart showed a undecisive movement, I closed the trade at 11,130 , with -18 points loss.
Long position of SIMSCI was closed at 282.4. Volume did not support buyers to push up further, and RSI was forming failure swing. A descending triangle was forming as well. I do not like the situation like this. Closed the trade with small gain. +0.4 point.
I was very unhappy with the liquidity of SIMSCI. Sometimes it does give me the feeling of 'Why on the earth I am wasting my time trading this dummy index futures?'. Look at the daily volume, it is hardly cross 5000 contracts.
I do see opportunity in SIMSCI futures trading, however, given the lack of liquidity, I am considering switching to some other better choice.
This is 10-min chart of SIMSCI as at 3.30pm.
It is a excited opening for U.S market. From 1 min chart of Mini Dow,there was a good setup for Long position. Mini Dow futures was trading above 10, 15, and 30 period moving averages and closed above CBL entry level. RSI supported the entry decision by making higher lows. Entry was at 11075 with exit at trailing stop 11114.
This is daily chart of SIMSCI futures. It broke out from existing downtrend channel last Friday after a strong day. It is currently facing resistance soon.
Directional index has started ticking up after reaching oversold level. And trend index shows a same picture as well. Sentiment is improving though it is still remain negative.
It is likely to see rebound rally, though downtrend is still intact.
So we have seen a strong rally last Friday. It was expected to hear some voices in forums discussing 'Bull is back to action'. Well, I have decided again to do some analysis on the trend. And this time, I want do something interesting.
Firstly, I am looking at daily trend of UOB Sesdaq index. Last week's rally put a pause to the heavy selling. Short term moving averages are ticking up. However, it is still far below long term moving averages. And there is, in fact, nothing much in term of trend change. Downtrend is still intact.
From Directional analysis, negative sentiment is still hanging in the air, though it was ticking down at the end of last week, I do not see positive sentiment gaining strength.
(Click on the chart to maximize it)
If it is a little bit tough for trader to accept establishment of downtrend (Since, most of traders only recognize Bullish pattern), I have inverted the daily trend of UOB Sesdaq. The inverted trend indeed showing me a 'BUY' opportunity (in reality, a SELL, remember, this is a inverted chart) if I were to do trend trading.
In fact, I am not impressed by the rally. Maybe, at least for now. My strategy will be sell on strength instead. The rally in some way, provides a chance to let go current holding of small cap.
There was a second entry opportunity to Long SIMSCI. Due to some personal commitment , I gave up the trading opportunity. Anyway, second entry was at 283.9 with potential exit at 284.8.
It was a strong day for SG market, which in turn provides SIMSCI day trading profit oppportunities.
I closed the day and the week in positive note again. Total gain for the week is +2.8 points.
What a disappointing day. In fact , it was a 'do-nothing' day for me. SIMSCI futures was choppy and weak, even though Nikkie Futures were strong. No trade was made. I might be missing an entry at 275.4 around 415pm. I gave up the opportunity as I do not like the way market moved. The potential reward was not attractive enough for me to take risk.
No trade.
I did not initiate a Short position in SIMSCI before lunch break. Nikkei Futures does not give me the confidence to go short. In 9-min a positive divergence of RSI is observed and in 12-min, it starts to ticking up. Volume is drying. I might be wrong and again, missing profitable trade, however, the risk of being stop by SIMSCI gap up in the afternoon is too high for me to take.
So far, SIMSCI intraday movement has been choppy. Though a descending triangle is formed, sentiment support is not strong enough. No position is established.
SIMSCI 12-min
In fact, it will be profitable for short trades in the afternoon session, however, none of my pattern setup was formed successfully, I did not initiate second trade for today. In fact, I was a bit tired after morning's first trade.
In today's trade, it showed the importance of intermarket analysis, even for day trading. SIMSCI follows Nikkei most of time (I have no idea about the reason).
Not so bad, I closed the day in positive note again.
It might be God's call. My broker's online trading platform is having some hiccup today. I do not like to trade when trading platform is unstable. This is unnecessary risk. Secondly, all patterns failed to form successfully and Nikkei and HangSeng remained flat most of time. Opportunity was found when RSI moving in overbought zone. I have given up the opportunity to establish Long position. I would call it a day. A boring day. No trade.
This is trend analysis of daily chart of STI. Downtrend is still intact, though there was rebound at the end of last week, that did not help much in term of trend change. There is no sign of recovery. Directional analysis wise, there was a slight up turn in directional element, however, it is still below trigger line. Negative sentiment is still dominating.
No reason to consider any BUY for now.
This is daily chart of Sesdaq. Nothing much has changed. There is no sign of recovery for small cap. Directional analysis shows a continuation of downward movement. Negative sentiment is still hanging in the air for now. Trend characteristics analysis shows intact downtrend with no sign of reversal.
I am not interested in any stocks trading for the time being.
Before a new week get started, it is necessary to have a view of Futures market movement retrospectively. It is beautiful, I would say. A downtrend channel has not been violated at all since it was formed weeks ago. From daily chart, short term time frame, I would say, 'Downtrend is still intact'. There was a small rebound at the end of last week. I am not optimistic about this jump. Very interesting to know that, DJ sank into negative territory last friday, again. Yes, again. I am looking at area between 280 and 282.4 as resistance zone while immediate support level is around 270.7. This is to provide me a bigger picture during day trading.
Here is what my chart eyes see
Directional analysis:
Downtrend intact, possibility of some rebounds exists as it reaches extreme area.
Sentiment analysis:
Remain Negative. Bearish for the time being.
