It’s a Bull Market

It is a bull market afterall. STI  bounced back immediately from “oversold” levels and looks like the uptrend is going to continue.

During the last leg of rally, rotational play in blue chips has helped to inch up the STI, while cushioning the correction.

It would be interesting to see if this coming rally is any similar or more broad-based. If it is the latter, the gains would be more substantial.

Personally, I feel that this second wind of late bulls rushing in should help to push the index at a faster pace than before.

Any sign of weakness would present an excellent opportunity into the early stage of this rally.

But do remember not to chase prices up in a frantic desire to catch it before it runs away.

Always buy near support prices.

Safe bets, again, will be counters which have been oversold, but with its uptrend still intact.

– C & O Pharm (support @ $0.495)

– China Aviation Oil (support @ $1.5)

– Cosco (support @ $1.87)

– Genting HK (support @ $0.445)

– Hi-P (support @ $1.04)

– Ho Bee (support @ $1.71)

– Noble (support @ $1.87)

– Olam (support @ $3.1)

– Singpost (support @ $1.16)

– Venture (support @ $9.2)

– United Enriotech (support @ $0.45)

Biosensors Ready to Pounce

Biosensors 22nd Oct 2010

Another medical related stocks shortlisted. Coincidence perhaps. The market is full of facts and people tend to read too much into it and tried to explain away with it., much like the real world. Enough bantering.

Biosensors should see strong support from its short term trendline and support level at 99.5 cents. The bounce on Thursday is a strong evidence. Immediate resistance at $1.05. Stochastics has just turned up and looks like a breakout will occur soon. Keep stop loss at 99 cents.

C & O Breakout

C & O 22nd October 2010

C&O has broken out convincingly and is still a good buy :

1. Extremely high volume

2. Stochastic midway up from oversold region

3. Candlestick has a long tail shadow

4. Bounce back after touching uptrend line

5. GMMA likely to start to expand.

6. Closed above several time tested resistance of 52 cents

With all the supporting technicals above, and price currently only half a cent from new support, traders can look at entering larger positions (after position sizing) with stop loss at 51.5 cents.

Conservative traders can keep stop loss at 49 cents

STI Late Buy In

 

STI 22nd Oct 2010

 

Late buying has seen the STI notched up a little after staying directionless for much of the day. However, volume remain sparse.

3161 has been tested for the past 3 sessions and has been holding up precariously.

It is difficult to tell if this level can hold on as stochastics continues to fall.

It  remains to be seen if the bulls are able to continue the supports.

3138 and 3112 are the next 2 support.

Genting Hong Kong

 

GentingHK 15th Oct 2010

 

Ever since correcting from its spectacular rise,

Genting Hong Kong has been consolidating within a tight band of 42 cents and 45.5 cents.

Friday saw a slight pick up in volume, hinting at the possibility of returning interest.

Stochastic is also turning up from oversold region.

GMMA is showing healthy trend continuation.

Current market is bullish and a trend continuation is likely.

Uptrend line and the resistance level at 45.5 cents is forming an ascending triangle.

Breakout is imminent.

Keep stop loss at 41.5 cents

STI rally sputtering

STI failed to close above 3160 on Friday. This is the level which gapped up previously to challenge 3200. The rally from 3100 was largely driven by blue chip laggards, namely the banks and oil rig builders. Stochastic has start turning down from overbought levels, indicating the retreat has just started. All these evidences point to a high possibility of a short term correction. Wall Street’s Friday gain would present a good opportunity for Singapore investors to sell into strength in the morning session. Even if the Singapore market has no gain, it would be wise to take profit or cut loss.

Weekly Review and Market Watch

Market’s charge is starting to slow. Especially when approaching the traditional bear month of October.

That is of course based on, statstical probability. Nothing is for certain. And market will always make it a point to prove us wrong.

The rebound in equities has been extremely strong in the month of September, STI and the Indian Sensex breaking 52 weeks highs in the process.

In fact, the rebound is broad based, ranging from equities to commodities and export/trade.

It is a condition of reversal of extreme bearish view.

I could not help but feel that the charge could be far from over, but it pays to take profit while the going is good.

Yet, true to the contradictory nature of trading, one should also ride on profit. Take profit only when established support has been hit.

Of course, if price from the established support is a huge gap, it would be prudent to take it sooner than later.

Adding new positions at the moment would not be suicidal, but taking on unecessary risks.

While waiting for correction/retracement to appear, it would be good to add a few stocks on the watchlist.

Trending Stocks

C & O Pharm

Cerebos

Genting

Hi-P

Jardine C&C

Osim

Singpost

YangZijiang

Improved Technicals

Biosensors

Cosco

China Energy

Noble

Olam

Straits Asia

Wilmar

Share Buybacks

OCBC

GP Industries

Hi-P Chance for a Breakout

Hi-P 7th September 2010

Another low risk play, similar to YangZiJiang before its breakout.

1. Ascending triangle with very narrow trading range. Formed by resistance of 86 cents and uptrend line

2. Stochastic yet to hit overbought.

3. Volume low, sign of impending surge in volume

4. Company share buy back for past weeks (similar to Informatics and SingPost)

Keep stop slightly at 83.5 cents

Blue Chip Bargain Hunting

STI 31st August 2010

Late bout of bargain hunting practically saw the STI recovered from a 30 pt drop.

This is an encouraging sign for several reasons :

1. Late buying is usually a sign of investors confidence.

2. Volume is high.

3. Intraday low shows that support around 2025 is extremely strong. Past few sessions have failed to break it and it rebounded strongly.

4. GMMA is merging, and has not crossover. Short term averages are likely to turn up soon.

5. Stochastic is just mid way through and has yet to reach overbought region.

6. Momentum is also starting to turn up.

7. 50 day moving average lends further weight at 2025.

Chances are high that the index should continue to go up. Immediate resistance around 2963.

Those who accumulated last week can look to add to positions (remember to cater for risk and not overbuy).

On an individual stock level, some of the following stocks as seen its technicals improving :

1. Singtel

• Breached strong resistance at $3.07
• Stochastics not yet overbought
• High volume
• Recovered and trading above long term moving averages (50ma, 100ma, 200ma).

2.Cosco

• High volume
• Recovered support of $1.55
• 50 day moving average turning up, and may seperate from 100 day moving average.
• Uptrend line still intact
• Stochastic turning up

3. Wilmar

• Extremely high volume
• Stochastic turning up from low end
• Still in a downtrend, but 50 day moving average may turnup and cut the 100 day moving average soon
• However, strong resistance at $6.4

SingPost Daily Share Buy Back

http://www.singpost.com.sg/singpost_03investor_fNews.htm

SingPost has been quietly buying back its own shares from the open market since 12th Aug as treasury shares.

As of 27th August, it has accumulated a total of 7 million shares.

This could be a sign that something positive is yet to surface for this counter.