Thursday, August 25, 2005

Market rebounded technically

Market rebounded slightly today as expected. I have seen it many times, it's the human psychology at work. When prices are low, there will be many bargain hunters in the market. When it gets lower, they will either continue to buy more or "loon" (Hokkien for hoping). Then when price falls to an unbearable level, they sell in droves causing the share price to tumble even more. I have to admit, i'm a victim myself before. Even as of now I am so tempted to buy COSCO CORP when the price was rebounding nicely at 2.40. I had to contain my greed. The support for cosco will be 2.31, you judge your own risk appetite. Anyway, in a directionless market, a rebound can be shortlived as soon as the next day. Hence I always thought it will be better to buy, when the market sentiment is better.

Keppel Land again was sold down on married deal to 2.40 at close and this is the second time this week. Something is brewing. The share price soared to 4.50 only to close at 2.40. Buy ups were strong today. Volume was also 50% more than yesterday. Maybe many could have forgotten, but both capital land and keppel land are casino plays. So if the play is back, watch this two fellas.

Marine counters were rather muted. Volume is still uniformly pretty weak thus forming what I believe to be consolidation mode. COSCO was the only making a sharp decline.

Banking on my memory, I remembered in a directionless market, prices will move to resistance level before heading down to test support. Since most of our counters are near resistance, range trading can be deployed here. The movement can be explained, bargain hunters returned to buy their favourite stocks because it's near support and "cheap". When price start to go up, greed will drive more people to buy and hope that we are in a bull rally. When buying starts to dry up, these greedy people turn fearful and begining to sell ... and this selling thus triggers more selling into fear.

Bio-T, simply cannot ignore this counter. Look for it to break $1 resistance with volume.