Monday, July 16, 2007

Weekly thoughts

Had a fantastic last week! My loses was erased the 2nd time in my trading life. I hope that it the last of it all!

Dow closed 45 pts to close at another record high again. Should see STI following suit too, I hope. On the whole, STI doesn't look too good.

I spotted the dreaded bearish ascending triangle formation again, accompanied by decreasing volume. If it breaks the downtrend line, we would go for yet another major retracement. On medium term, STI looks like channel trending between the nearly parallel lines. As we are now officially on earning seasons, that should provide some support for STI. Even if it drops, shouldn't be across the board. I'll keep clear of STI index components...risky.

I posted an entry saying since 1985, average monthly returns for STI in August is negative. In fact, August is one of the worst performing months. Not surprising since earnings seasons would have been over and there's no fresh leads to attract the bulls. Just be cautious as we near month end of July.

Straits asia

Ema 20 days support seems strong. Horizontal support level at 1.41 holds well. Seems poised for upside. I hope to see the downtrend line broken around 1.53, that should stem the downtrend. Flag target 1.80 upon breakout at 1.56 level with high volume.

Action: wait for breakout at 1.56!! Not waiting to enter at this moment.
Tp: 1.80
Trigger: No identifiable trigger yet. Perhaps upcoming results with good outlooks by management regarding coal reserves?


CSC price pattern looks quite predictable and nice.

Always forms a base after surging. When base forming, volume drops below average and surge up above average when breakout of consolidation phase. This is exactly what happens now. CSC is now in consolidation phase with the accompanied low volume. Stochastics and MACD supports a possible breakout. Flag target of minimum 0.540 achievable if breakout at 0.470 with high volume. The force is strong with this one...

Action: Look out for breakout at 0.470. Ready to sell 10-15 lots upon breakout to new height - need to reduce exposure to stocks to protect capital
Tp: 0.540
Support level: 0.420
Trigger: Could be IR contracts? haha, i wish!

Okay lah, late into the night already, later SWIBER CHEONG AH! CONSTRUCTICONS CHEONG AH! ahaha, shout loud loud :)

Thks for visiting my blog guys! It had broken 3000 mark already! I didn't expect the number of visitors to increase from 2000 to 3000 so fast :) I stil remember those days where there are only 12-15 people per day, but now i'm like getting at least 30 per day. Thks for all your support!