Some of you were wondering why I chose to analyse the US market instead of analysing the Singapore stock index. First thing is that US has the biggest financial movement among the world. The world depends on US. That's why the standard currency is the dollar. Singapore is too small to make any contribution. In fact, if you look at the markets well enough, every movement of every Hang Seng, STI, Nikki, KOSPI, Taiwan, Europe are following the US call. US down, whole world goes down, US up, whole world goes up.
I chose the DOW because it is easier to look at the trend using DOW. The first thing everyone looks is the DOW. After the DOW, S&P500 will be the next to look at. In actual fact, I depended on the S&P500 futures to allow me to guess the direction of the day with live streaming. Then after that I used the DOW to analyse the psychology of the market using candlesticks. These are very technical terms to someone who doesn't know what a stock market is. Not only technical terms, one has to look at the news and macroeconomics as these are the movers of stocks.
So by knowing the direction of the US market, one can apply the knowledge to across all types of markets.
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