STI ended February with a Hammer (Candle signal), and March is off with a good start, up 2% each over the last 2 days.
Someone asked me, why is local market "so bullish"?
Other than the usual technicals (and I don't explain fundamentals), I have 2 basic explanations:
1) Short covering:
STI/SG has been weak for "long enough period". When she managed to break certain significant high levels, it would trigger short covering (short positions need to buy back to square positions).
Different Time Frame traders would place Stop Loss at different levels.
If the market kept travelling higher and trigger different levels, she could trigger more and more Stop Loss (buy actions), then bidding up higher, to trigger even more levels above.
Funds which have "not bought" is also "caught short", because they need to "start buying", before they "lose out" to STI, when bench marking.
2) This has to do with my "4-related-Asian-markets".:
Yesterday's post, I saw the other 3 already attemptng their 200emas, and 2 of them are trending North, away from their YEC. It's really time for STI to do some "catch up".
Tomorrow is Friday, and it's already a very bullish Weekly candle, to be completed tomorrow.