Market Rally Up From Morning Low

The market seems to be rallying up from the morning low. I wasn't looking at the intra-day movement and sold off my NOL holdings at S$1.14 (bought at S$1.04). Since I am not a day trader (I am a Weekend Trader, remember?), I paid no heed to intra-day movements.

This counter showed weaknesses by having double down bars with second closing below the first. It is also scheduled to meet the 20MA. The 20MA is expected to provide some support. However, as I do not have good data for the WOOTH charting method, I decided to play it safe and took the depleted profit of $0.10 missing out the major part of $0.25. Since the major trend is still down, it has higher potential to turn down than up. Defensive play is the key now.

Both MACD and Stochastics are showing signs of down trend which also coincides with the price trend in the short term. I think I will wait and see how it perform over the next few trading sessions.

SGX Market is heading for correction again!

It seems that SGX Market is heading for correction again after some weak showing over the last 2 sessions. The major news is that DBS is raising fund again. This time, a total of S$4 billion. This is huge number by Singapore standard. It is equivalent to about S$900 per resident or S$2,700 per working adult assuming 1 in 3 in the population is working. In a weak market like this, a rush to raise capital is something worrying to me. I think the share price will move lower to even below $9 prior to adjustment or below $8 after adjustment. This is just based on gut feeling. No concrete calculation is done.

Note: Sold Capitaland at $3.18 yesterday in the early afternoon after looking at the market during the lunch hour. Took profit of $0.62 per share (24%). Based on my WOOTH, the good and safe entry price should be $2.40. However, this counter is strongly supported and the largest counter in property sector (as in SingTel), it commands some additional premium (I guess). You see very strong support at S$2.50 ~ S$2.60 level. So, entering around that level is quite safe.

Missed out NOL when it was $1.28~$1.32. Was not able to sell due to work commitment and not watching closely enough. Seems like Weekend Trading method is not easy. However, still holding on to the paper gain of S$0.12 per share instead of S$0.30 per share. I hesitated earlier and it when down, boom, boom, boom.

Current holdings:

STOCK NAME	AVE COST PRICE	LAST DONE PRICE	+/-	+/-%
COMFORTDELGRO	1.49	1.38	-0.11	-7.38
NOL LTD	1.04	1.16	0.12	11.54
SING TEL	2.3	2.55	0.25	10.87
ST ENGG	3.18	2.29	-0.89	-27.9

NOTE: I had to batches of SingTel. First batch was bought at 3.67 and second at 2.30 with equal volume. I sold half at 2.48. The system uses FIFO, so it assume I sold off the first batch and took a loss of 1.19 (heavy losses). Actually, I meant to treat the 2.30 batch as short term trade.

Stock Analysis using WOOTH method

ST Engg:
ST Engineering used to be called the defensive stock. However, under this down turn, it is not spared. Looking at the history more closely, one can realize that it did badly during the previous recession. The so called defensive by analyst is totally unfit.



SingTel:
SingTel is another defensive stock by analysts. Again, looking more closely at the past recession, it becomes obvious that this stock is highly correlated to overall economic cycle. It is not defensive as it is perceived by analysts.

SGX - Stock Market Direction - short term bullish

Sold DBS just now for 9.64 'cos I think the chart seems to turn bearish (bought at 9.08). Took profit. I think it may go below 9.30.
Hold ComfortDelgro (bought at 1.49) chart seems to turn bullish. Higher lows and higher highs. Above 20MA & 50MA.
Hold Capitaland (bought at 2.56 ave) chart seems still bullish. Above 20MA & 50MA.
Hold NOL (b 1.04). Bullish. Above 20MA & 50MA. 50MA seems to be strong resistance. Just above 50MA. See if it holds.
Hold ST Engg. (b 3.175). Lower highs. Above 20MA & 50MA. Entered too early.
Hold SingTel (b 3.67). Higher highs & higher lows. Above 20MA & 50MA. Bullish in near term.

STI Chart Pattern - Market Review

The Market is turning bullish for short term now. Looking at the STI chart, you can see that it has bounced off the support for the second time and it stays above 20 Day MA. Apart from that, the 5Day MA is also above the 20 Day MA. That shows that short term, the market is still bullish even though there has been some corrections. There has been some strong buying early last week before the bad news set in especially the failure to reach agreement on bailout package for auto industry in US.