The US presidential elections is finally over. Hopefully the new president will be able to steer the world largest economy through this financial crisis.
I realized that I should have look at the charts of the Dow Jones yesterday (figure above,click to zoom in) before deciding to hold onto any stocks. This is because the chart of the Dow Jones shows that it will most likely not be able to rise, as it is nearing the top of the bollinger band, i.e. the top of the band forms a resistance..so ideally we should have closed all our positions yesterday.
As for the STI, when it was closing yesterday, I also should have seen that the middle of the band could be set as a resistance, and hence positions should have been closed as I could not be sure of whether the resistance line could be broken or not.
The Dow Jones has turned more bearish, however signs are not clear yet. ( That is why I feel that positions should be closed yesterday. Do not trade if you are not sure!) It has dropped below the MAs, however as long it does not drop below the center of the bollinger band, it still has a chance for a rebound.
The STI will most likely follow the Dow Jones, but if a rally were to occur, the jump might be bigger than that of the Dow Jones, as it is below the center of the bollinger band.
So give a day or too, let the post election stock market stabilize first before reading the signals again.
*I guess, it shows that daily monitoring before the end of the day is crucial to determining whether you should buy/sell your stocks for the next day..