Entries by Spencer Li

Noble Group – evening star signals turn to the downside | Technical Analysis | Singapore Stocks

  After the rebound for Noble, it is now setting up an evening star pattern, which is a short-term psychological pattern signalling an exit by the smart money. This trade was triggered last Friday, and I am expecting the SG markets to open down tomorrow after the bad news (or rather lack of good news) […]

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DBS – are the banks leading the decline? | Technical Analysis | Singapore Stocks

In my previous post, I mentioned that Genting was going to continue its decline, and currently it is below 1.50. The STI Index has closed on a new low, below the previous low of 2720. What does this mean? It means that there is a good chance of seeing new lows, either with or without […]

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Representativeness Bias – The Dangers of a Small Sample Size

In order to derive meaning from life experiences, people have developed an innate propensity for classifying objects and thoughts. When they confront a new phenomenon that is inconsistent with any of their preconstructed classifications, they subject it to those classifications anyway, relying on a rough best-fit approximation.     There are two main types of […]

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Cognitive Dissonance Bias – This Can’t Be True!

When newly acquired information conflicts with preexisting understandings, people often experience mental discomfort – a psychological phenomenon known as cognitive dissonance. Cognitions, in psychology, represents attitudes, emotions, beliefs, or values; and cognitive dissonance is a state of imbalance that occurs when contradictory cognitions intersect.     This term encompasses the response that arises as people […]

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Market Seasonality and Patterns – When is the Best Month to Buy?

One aspect of market analysis is statistical analysis, which is using statistics to find correlations and patterns, where opportunities of skewed probabilities may lurk, giving you an edge over the market in the long run. For investors, this lets you know the best month to start building your portfolio, or to rebalance/adjust your portfolio allocation. Seasonality […]

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