Wednesday, May 05, 2010

STI spooked by the PIGS

Who's afraid of the big bad PIGS? In the real world, the wolf should be afraid of the PIGS. One little pig knocked on the wolf's door and caused such a panic around the world. Now, the wolf is afraid that other little PIGS will come to knock on his door.

Let's take a look at STI weekly:

Weekly chart shows a bearish divergence on long term force index, but not on macd histogram yet. The degree of selldown isn't as much as that experienced in January earlier this year. Maybe not yet? haha! The previous selldown took 4 weeks (4 bars) before stabilising, so perhaps we'll see the same too? The selldown had brought STI to the value zone already, so the minimum target of the selldown had been reached. It will most likely over-react to the downside.

STI daily:

There's a gap support around the region of 2790 to 2820. Looks like that level also coincides with the mid term trendline established in Aug last year. Another 1.5% to 2.5% to go? I don't think now is the time to sell your cats and dogs to raise capital to buy up stocks. I finished my first wave of buying...will wait for clearer signs before putting in more money.

When there's nothing to do, do nothing.


AK71 said...

LP my friend,

It is not the "PIGS". It is the "PIIGS". We are talking about countries, not farm animals hor. ;)

la papillion said...

Hey AK,

Portugal, Italy, Greece and Singapore mah, PIGS, no meh? ;)

AK71 said...

Er... you very cute hor? hehehe... for the benefit of others not as well informed as you:


OK, you can applause now. ;p

la papillion said...

Hi AK,

Applause!! I thought it's Germany, not Greece :o