Thursday, February 01, 2007

Dow saved our ass

Dow saved our ass.

A decent minutes released by fed meeting last night causes dow to almost break its record, and causes quite a rally throughout the regional bourses. STI went ahead to get its new record high again by rising 42 points, HSI recovers from yesterday's drop to rise 323 points up.

Looking at hsi, we're rather at a crossroad. Stochastics still shows signs of downtrend, perhaps going to do a reversal now. RSI will begin to show uptrend if it hits a higher peak than the previous one. Currently, RSI is at the same level at the last peak. A curious situation arises... from the price, it seems like we're heading for a double top (a sure reversal sign that it's going to head south). It'll have to depend on tmr. If HSI breaks 20,600, it will not only cover the gap formed 5 days ago, it will also signal a new uptrend. Only then we will have our CNY rally for HSI.

For STI, we just broke a new record,so we're in no man's land now. Stochastics clearly formed a minimum and is heading upwards now, with RSI show clear uptrend. But if you noticed, that's a gap that is going to be covered sooner or later. Probably later.

Today's price action:
Yesterday: 0.085
Today: 0.090

Forms clear uptrend, maybe going to try to test resistance at 0.095 again. Still have faith in this stock.

Yesterday: 0.43
Today: 0.435

I think it has tested support at 0.43 and bounced right off. That's a good sign. I believe it's going to test resistance again at 0.485 again.

Yesterday: 1.11
Today: 1.12

Downtrend finally over? I see some reversal signs based on stochstics and MACD. RSI still hovering around 30%, so we need to see it go past 50% on uptrend before the worst is over. Basically based on fibonacci, can expect a technical rebound to the region between 1.17 (38.2% fibo) to 1.20 (61.8% fibo). Hopefully by then all the signs would point to an uptrend...portfolio bleeding heavily because of this. Oh, next Thurs should be the release of 2nd quarter result. As usual for tech companies, dec quarter should be their strongest quarter, add to the fact that longcheer has such a big surplus of extra cash (which they can use for M&A) or (I hope) paying a fat 'hong pao' dividend for investors. Cross my fingers :)

MAE enggr:
Yesterday and today: 0.23

Top tweezer pattern? It's a pullback with light vol, RSI still above 50%, MACD might be attempting crossover. I think nothing to worry.