Monday, April 02, 2007

Warning signs

Warning signs flashing again.

STI went up with lower volume again. There's a whole lot of bad news on US side but market doesn't seem to acknowledge that fact and keep going up. WITH LOW VOLUME. Alarms bells went off in my head again.

I'll be cautious for this month. Earnings seasons for singapore side is over. I don't foresee any good news coming up, esp with Iran-UK-US tension and rising oil prices. Iran threw stones and flash-bangs at UK embassy - a step back for the peaceful return of british sailors. Could it escalate into war?

We haven't covered the gap at 3000, I'm always mindful of this when STI keeps climbing higher amidst all the bad news with low volume.

Today I sold off half my Swiber holdings that I contra last week. Since tmr is the contra T+3 day and I don't intend to hold on due to the tense situation, I just queue to sell before I left in the morning at 1.34. I bought at 1.31, 5 lots, so that's $90 gain. Intra day high for swiber went as high at 1.38 before closing at 1.32 again on high volume. I still have another 5 lots bought at a very safe price of 1.24, so that will let me ride the uptrend should this stock rallies.

Pac andes went as high as 1.20 before closing at 1.19 today, gaining a good 0.080 on higher than average volume. This comes when China fishery, pac andes subsidiary, wanted to split shares to raise liquidity, presumably. That's more upside to come, of course. I don't intend to sell this off for the mid-term, as I see very good prospect for this stock. In fact, I'm waiting for the shareholder meeting for them to approve the rights issue so I can get 1-1 new shares at 0.52, a huge discount at today's closing price. I'm already getting 40% returns on this stock already, looking to get even more.

I won't have time to monitor stock the whole of this week. I hope I won't get caught off guard if anything happens. Anyway, I closed all my open positions and sold off all my warrants and volatile stocks. Now only sitting on pac andes, yellow pages, longcheer (sigh) and swiber.

Oh ya, cosco reached my target price of 2.82 already. Now is a bad bad time to buy, looking at all the technicals. MACD going to cross over the downside. RSI flat or heading down. Stochastics heading down. I'll probably try to fish for bottom around 2.77/2.78, where that's the last peak and hence support level. Anybody wants to join me?

My condolences to those who lost their lives/properties on today's earthquake and tsunami.