STI 2nd day of distribution (warning!)

Warning signs...2nd day of distribution for STI. STI opens positive but close slightly negative again, with higher volume than the day before. Classic signs of distribution. I give you at most another day like that and we'll have a more major drop. This time, it's broadbased and it's not only restricted to STI components. A lot of pennies went up very high in the morning but closed negative or neutral.

All buying signals are thus cancelled. I would highly advise those who bought on contra or have weak holdings to take whatever profit first. My brother (working as trader in banks) advised me to be careful of my holdings...first time he said that. Just be careful guys.

Shanghai dropped 200 over points (5.25% drop). That's a huge drop...equivalent to STI dropping 180 pts...or dow dropping 720 pts!! Really no joke!

Do I have weak holdings? Perhaps only one - yellow page. But that one is too illiquid (sometimes there are days with no trades at all), so I'm not so worried it will tank. Those stronger holdings which are deep in profit, I must start to draw defense lines (as Decipher puts it), which are basically support lines to determine my exit point.

Since tmr I won't be around to monitor, no point drawing defense lines now. I'll do it over the weekend. Jittery times again...with the earnings report out at the end of July, coupled with no positive news...i doubt we can see any major advancements. It'll be lucky if we don't end up with a negative month.

Take care!