Market Update: 05 May 2019

Last Friday, US Nonfarm payroll easily beat Wall Street expectation with the actual figure of 263k increased by 196k in March of 2019. Unemployment rate fell to 3.6% vs 3.8% expected and the lowest since December 1969. US interest rates remain unchanged and investors had begun to expect that the Fed might signal a rate cut.

1) When Fed lowers Interest rate, lending becomes cheaper, increasing the flower of money. But inflation can become a problem.
2) When Fed raises interest rate, lending gets more expensive, this can slow down the economy. But it generally lowers inflation.

However, if Fed decides to lower the rate, the economy could be in danger of overheating, driving inflation. Cutting rates now would also take away weapons in Fed’s arsenal in the event of an economic downturn as the interest rates are only at 2.5% which doesn’t leave much room for rate cuts.

With the above information, does it really affect you will still depend on your trading time horizon. Going forward, I will be sharing simple trading strategies that a trader must include such as Time Horizon. Without further ado, we shall start with STI charting.

 STI continue to climb up to 3400 point which broke above the 61.8% Fibo from the previous support line. I take no position even though it has reached my red circle zone which I have shared in my last market update. I am monitoring closely waiting for a trade setup and trade signal to come into play. Remember that no position is still a position. (Most traders fail to aware that due to their hand itchiness and always wish to participate in the market)

DJI – Even though last Friday US reported such a bullish data, but the market failed to break through the all time high. This might be because no one wishes to be trap entering at the high price. I will continue to monitor at 27k and wait for a reverse candle.

Oxley has sold Chevron House for up to $1.025 billion with terms in the contract. Base on the chart, the price closed above 200MA. If your hand is itchy to enter into the market, you may consider this trade. (I have no position in Oxley)
Entry: $0.305/$0.31
SL: $0.28
TP1: $0.34
TP2: $0.37

Overall: I will go with no position is still a position as for now unless those counters in my watch list show a better trade setup and trade signal with good reward to risk percentage.
Hint: Readers may take a look at CityDev (SGX: C09)

You are remind to trade base on your own risk. Plan and Trade well :)