Skip to main content

Leap Year 2008



Today is Thursday on the 28th February 2008. Did you know that this year is a leap year? I have a feeling that STI will see blood tomorrow on 29th Feb 2009. Here's why.

As u can see from the chart,

1) STI past few days tried to cross above the 3120 resistance but it cant. 3 black candles on moderately high volume was formed. All below the resistance. And this is coupled with the fact that Dow rose 100+ points each day for those 3 days.

2) STI shows a trendline break today showing its first signs of market weakness.Very yummy!

3) STI incidentally is at the resistance at the 50-day MA and as I've pointed out in earlier posts, the major trend is still down and any sign of weakness has to be acted upon!

I bought put warrant STI3100BNPeP080328 at 18 cents during closing time. Cheers. Hope it works out. I will expect STI to find support at the 3k mark.

29th Feb 08 Uodate : Dow saw blood...STI down 45 points at 3028. Sold my warrants at 0.205 for a net gain of 13.8%! Cheers...

Comments

Post a Comment

Popular posts from this blog

The Week Ahead of 17th March!

Lets look at the STI and HSI weekly charts so far..... STI is still firmly in a downtrend. Any rebound from here is going to be capped at the 3000 level and a break downtrends will indicate a midterm target 2600 as the next level of support. Volume is thinning out compared to last quarter of 2007 pointing to signs of bottoming out but prices are still dropping so there's no reason to get aggressively long yet. The last bear market lasted for 2 years from 2000 to 2002 and we are currently only 1/2 year inside this bear. No one will know when this bear market will end but bull markets traditionally last for 2-3 years. Lots of speculators have lost tons of money saying " this is tooooooo cheap". To put things into perspective, the typical bull market lasts for average of 3 years. Lets say u picked the exact bottom. That would just mean u are 2-3 weeks ahead of those u invest their money when all the signs are clear. Would that make us a lot richer to pick the exact bottom? i...
1 comment
Read more

Cosco Corp

Cosco Corp is still in its long term downtrend but it has already broken out of a short term downtrend which started since Jan this year and retraced back to its breakout point. Currently it rests upon the support line and any bullish market movements will likely take this counter to test the $4.60 region. The chart looks similar to SGX but Cosco is still at the support of the short term support line and if market can turn bullish, ie STI crosses 3120, this counter can easily run up to $4.60 and test its long term trendline resistance from here. Update : I cut out of this counter....Market turning down. Normally All consolidations always breakout in the direction of market trends. Now market is turning down...Cosco has no chance!!!
Post a Comment
Read more

What is a BEST trade?

This is from this book I am currently reading " Market Wizards: Interviews With Top Traders " U can find this book here . It talks about what's the component for a best trade. 1) Fundamentals 2) Technicals 3) Market Tone. All this 3 must be present. Firstly, the fundamentals should suggest there is a imbalance between supply and demand, which could result in a major move. Secondly, technicals which is the chart must suggest that the market is moving in the direction the fundamentals are suggesting. Thirdly, when news comes out, the market must react in a way that reflects the right psychological tone. For example a bull market should shrug off bad news and react vigorously to good news. Lets look at the above 3 conditions and examine our current market situation. 1) Fundamentals suggest that world economy are not going to be as doing as well as past 2 years for sure. Tightening of credit conditions means that less money is going to be following around. Much less flowing i...
Post a Comment
Read more