Monday, June 20, 2011

STI at channel support & Oversold

STI closed 3005 on friday ending the week with the Eighth consecutive day down. How rare we have this 8 days down in the last 2year, i think it gives us a good opportunity to BUY again! The question is always WHY?

My view is:
1) We are not in the bear market yet, now is just 10% down from the STI top(3300)
2) RSI is oversold <30, the last time it went below is before the Tsunami, we got chance to see rebound if Tsunami never hit us again next 2-3weeks time.
3) STI hit channel bottom, 3000 is a psychological level.

I will update if there is any good stock to buy, so far NO SIGN of rebound yet, the very few stock that is still standing are Firstres, Straitsasia, Rafflesmg. When times come we will be pampered with choices.. Stay Tuned!

Wednesday, June 8, 2011

Did you follow my previous post?

Follow up on my previous post on 1st June mid night:
1) I mention that it is hard to trade best to keep 70% cash, that day was the recent high STI hit 3181(resistance), if you have kept cash, today STI closed 3102(support) you should have money to buy some good stocks or Short some bearish stock.

2) I mention that the 3 popular stock is at risk of being short down Sunvic, Osim, Sembmar
- Sunvic went to the low of 0.73 next day after my posting, at the point of writing it was closed 0.78
- Osim was down to the low of 1.49 today! at the point of writing it was closed 1.67
- Sembmar was down to the low 5.19 at the point of writing it was closed at 5.33

At this point of time most people will ask what is the direction STI heading to? Currently STI still in the danger position as today it trade in a narrow range, although it is hanging at the 3100 support, if the support fail to hold we can go down further. The STI is currently below 20/50/200 Moving average, it show that it is downside bias and we should be worrying now even though we are at support level, hence play Defensive not Offensive. Be bullish when all the big stocks start moving up, meanwhile what you can do is to prepare when market starts to move. What bullish stock to buy if market goes up? What bearish stock to short if market goes down? If you are in my newsletter mailing list, we mentioned a few recently.

Cosco Corp closed 1.85 today, Following up my previous post you should be in the money already. As mentioned 1.80 is support level, we should take profit when . Short more if the support doesn't hold. Stoploss 1.91, reduce position if STI turn bullish

Genting closed 1.97 today, it is in a very obvious down trend momentum, currently on a sideway consolidation. IF it move down lower(break previous day low) it might visit 1.87 again, good candidate for shorting. Stoploss 2.04, reduce position if STI turn bullish

Thursday, June 2, 2011

Cosco Corp double top?

If you have notice, i have lesser post recently. This is due to the market inactiveness, and i think is hard to trade in this kind of market and so i think it is best to keep 70% cash and wait for market to show the direction.
Recently alot of "favourite" stock got shot down, e.g Gallant, Ramba, Ausgroup, Cosco. Watch out for those that still looks strong, they probably be next e.g Osim, Sunvic, Sembmar. Make sure you always got your stoploss in hand.
Cosco closed 1.94, has been down for the 6th week. The chart looks like it is consolidating for the past 1 week, if break down, possible to reach 1.80. If 1.80 support is broken there will probable be more downside as it is going into a long term down trend.
Once 1.80 broken the chart also form a double top formation. Good candidate for shorting, short only when it break prior day low, stoploss can place at 2.02.