Tuesday, September 28, 2010

Market Update and MGM

We're at the point of time now which I feel the market has probably gone up a little too much and is due for a slight retracement. Let's take a close look at both the Dow Jones Industrial and Hang Seng Index to have a better feel of things to come.

Dow Jones Industrial Index
The US market has completed a spectacular September month, rallying from approximately 10,000 points to the current level of 10,800. In this month it also forms 3 higher highs. Although it has rallied quite a fair bit, I believe there might be still a little bit more of upside possibility. Strong resistance should come at approximately near the 11,000 mark.

Hang Seng Index
Switching over to the Hang Seng Index (which is usually the key measurement for Asian markets for me), it has already reach a resistance level at 22,400. Even if it goes up, the next strong resistance level will be at approx 22,550 level and I don't really feel it makes much sense to gamble on such a small gain.

Looking at both US and asian market, it seems a good time now to sit back, relax and wait for a retracement before entering the market again. Most of the good counters seems to be overly bought and doesn't offer any value now. At the moment of me typing this post, the general asian market has tanked today and Moody's looking at the possibility of downgrading Spain's rating. Doesn't look very bright for Europe side either.

MGM Resorts International
Wow wow this counter flew yesterday, moving up a whooping 5.44%. At one point during the day, it was up more than 7%. This comes amidst news that MGM Resorts is seeking to list her Macau casinos. Read more about it from MarketWatch here. Although this is not really new news, I'm happy that it still has enough effect on this counter.

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