Market Volatility will be Back after Trump's Reform Tax Announcement on Wednesday

Market rally on French Election news and expectation of Trump`s reform tax announcement on Wednesday.  The market  will be strong until Trump`s reform tax announcement which is largely priced in. After Wednesday the market will start to focus on the tension in Korean Penisula and the possibility of US federal government spending shout down if congress don`t pass the spending bill  by 28 April midnight . If Trump insist on building the Mexico Wall , the risk of shut down will heightened. Enjoy the rally until Wednesday , volatility will be back on this weekend.

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USA Celeberate Start Of Tapering , STI Not Excited!

Dow was up 292 pts, STI closed mixed,  up only 8 pts due to a sharp reversal in Hang Seng, hitting a high of 23404  at opening only  to close at 22888. It was drag down by China short term money rates spiking up for a second day as the PBOC refused to inject liquidity into the market.

Funds flow are clearly favouring the developed markets out of emerging markets.I stay bearish on STI unless it can hold above 3135

Spore blue chips remained weak with players selling into every rebound. Although the broad market is quiet, some penny stocks are seeing some speculative play coming back.

Villianz and Otto Marine spectacular run up is spilling into another penny stocks and traders are begining to feel the sense of speculative fever returning. I like Villianz, Otto, Mermaid,  Hankore, EMS, SIIC env.  These are the current leaders. The secret to  penny stock play is the stay focus on a few  winners, don't   chase the market, accumulate with the BBs and act on the first break with volume, take some profit off the table and ride the balance of the outstanding position. Hope this penny rally with run till CNY and everyone gets a Hong Pow!

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Market Opinion

Investors continue to stay away from Singapore market inspite of Dow Jones strong rebound,, favouring Japan and North Asia. The overnight US 10 YT spike to 3 month high of 2.93% did not argur well for Singapore Reits and yield stocks. Blumont's rebound provided some shine to some penny stocks. Vallianz blown up volume seems to indicate a short term peak has been reached, most of the distribution done at 0.132, won't turn bullish until it close above this level. Hankore was particularly strong today but 0.073-0.074 level is a huge resistance. Mermaid continue its strong uptrend on the back of it's good 3Q results, strong support at 0.415, will put a stop at 0.41. Ezra closed high today, could be interesting watch tommorrow, BB may roll over last weeks big volume trade which is due next 2 days!

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Market Opinion

The broad market is bearish and volume continued to be low on selling of Blue Chips. The weakness in Gold and the spike in the US 10Yr Treasury are market expectation of Good Job data tonight. Anything more than 200,000 jobs added will invoke renewed tapering fear. There are only a couple of stocks that are resilent in the amidst the weak market. Vallianz continue its 4 Days winning streak, Genting Hk rebounded towards the end to close high, Mermaid attracted lots of buying at 0.41 and Ntegrator had a surprisingly last minute buy up to close high!

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