DIYQuant System Outlook for This Week

If you have been following my trading signals, you would have realized that recently I have been offloading many of the positions in my SG portfolio. If you check my current holding via stocks.cafe, you'll see currently I am holding only 4 stocks (I normally hold around 7-10). While the Singapore economy is flourishing, growing at 5.2% in Q3 and 2017 forecast revised up to 3-3.5%, on the contrary, my system is selling off. Usually this happens when the algorithm deems that the current market is overbought with many stocks already break out of their recent highs or they are starting to break down due to the recent short market jitters 2 weeks ago (I call it the 'little bear').

Anyway for this week, my system is not likely to give out any buy signals for SG. So it would be a good time to take a rest and see how the SG market work out. This may or may not turn into a full fledged bear market, The system is just trying to play safe to make sure it is not a dead cat bounce.

As for US market, there seems to have a bit more room for expansion in the riskier NASDAQ stocks while bigger caps are already in the overbought region. So currently my system is in the 'treading carefully' mode. There will still be some opportunities to take positions next week so stay tune.

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