Weekly Portfolio Update 21st May

Will be providing a weekly update of my portfolio in both US and SG holdings.

In May, we have added some Tech BABA, BIDU, GE, AXP, GMCR, SCO and Capitacom trust into the portfolio.

Is the Dow getting tired?

Where is Dow Jones next wave ?

Last week, we talk about the divergence seen in the Dow Jones transport vs the Dow Jones Index. This week, this divergence continues to widen and make many wonders if transport does not catch up, is it time for the Dow to chase down? Below is also an article link from CNBC on this concerning trend.

http://www.cnbc.com/id/102698634

This week, DJ has been closing at a new high , but daily volume are thin. With more than 65% of the companies announcing better than expected Q1 results, surely this a great news given the strong US dollar. However, US conflicting data has certainly not helped. Weekly unemployment claims have been good, but recent retails sales and consumer sentiment data has became weaken. The uncertainty in Fed raising interest rate has also contributed to the market uncertainty.

DJ Weekly Chart

From the weekly chart, everytime DJ touch the Upper blue trendline, it tends to have a big reaction. First, a 900 points drop towards the end of Dec, Secondly a 700 pts drop in March.

DJ Daily Chart

If DJ is to make a small correction, it maybe moving towards the 17930-50 region. A 300 pts retracement.

 My Take:

Not calling for a top or reversal in a very bullish market. But we might be able to see the US markets, along with the European markets taking a small break in the week ahead. If DJ can retest the 17950 region, we might be able to look out for some stocks at a better price, instead of buying into a stock when the index is at a all time high.

Long Dow Jones ETF

1) IYY. US   — iShares Dow Jones ETF

2) DIA.US   — SPDR Dow Jones Industrial Average ETF

Inverse Dow Jones ETF

3) DXD.US   — ProShares UltraShort Dow 30 ( seeks to deliver twice the inverse of the daily performance of the Dow Jones Industrial Average)

4) SPXU.US   —  ProShares UltraPro Short S&P 500 (seeks to deliver three times the inverse of the daily performance of the S&P 500 Index)

Advise: Kindly read up and have a good understanding on how each ETFs work as some ETFs provide you 3x the normal index movement, if you can earn 3x faster, mean you can lose 3x faster )

(Updated 27th May 2015)

Dow has dropped towards the Support Trendline ard the 17930-17950 region , we may consider into adding some DJ long positions, or stocks which has fallen along with this index slight correction over the past few days.

If the week is to close way below our support TL, a much much big correction is expected, till then we will still assume index are supported on this Bull run. An opportunity to long the index or stocks.