Thursday, July 19, 2007

Dead cat rebound? Or genuine?

STI managed pretty well today, closing +20, with an okay volume of 4.5 billion shares transacted. Dow didn't do too badly last night (-53), so I guess that helps a lot. We are pulled up by Nikkei strong start and later by HSI too.

Is the worst over? hmm, a little early to say. At most I can say is that the support at ema20 days holds, so that itself is a good sign. Let's see how tmr closes to get a feel of the strength. I guess much depends on Dow showing tonight and whether China suddenly throw in some policy tightening during weekends after the data came out today.

Most of the stocks rebounded today. Construction stocks had major buy in...stocks like yongnam (+7.4%), lianbeng (+8%) and CSC (+3.8%) all rallied strongly. Surprise surprise - China transcom went back from 0.475 to 0.510 today :) Haha, still got chance ah? Let's see if it can break out of 0.54 resistance and it can cheong ah!

Straits asia cheong today too, closing up 0.020 to close at 1.440 (intraday high of 1.45). A report from ang moh brokerage house, UBS, must be the trigger for this rise. UBS raised the target price of straits asia to $1.72 from $1.55, citing strong china imports, slowing exports (and rising demand) from indonesia, as well as resilient demand from india, japan and korea.

Support at 1.41 held steady. Indicators all pointing to upside more than downside. Should see some action within 2 weeks, either break out of downtrend line or break down of support line. I'll bet for the former :)

Yesterday lost around 4k. Today recovered half, not bad not bad :) My heart goes out to those who lost a lot. Heard that 777777777 from cna lost a year of salary from just the market drop yesterday...ouch... Hope everyone is fine :)

Dow +60, Europe all green :)