After the failed attempt last Monday, the bulls tried to resume the uptrend again today. The volume of STI recorded over 200 million today versus 140 millon recorded on the first attempt on last Monday. The federal interest rate hike was in question today. Whole of last week, majority of the reports I seen was saying interest rate hike will go ahead despite the damage by Katrina. However, today, the expected interest rate hike is questioned. Rumours has it that there might not be a hike afterall. If the market was depressed by the interest rate hike, what do you think will happen if there is no hike!
Our market largely ignore the US$4 spike in crude oil. I thought the spike was uncalled for as it was the result of fear of hurricane Rita and not the true demand over supply issue.
I have been waiting for this day since I saw the signs were there in recent weeks. The signs are, low volume in STI component stocks, selling pressure well absorbed. Most of the bluechips flirting around resistance line. There are some breakouts today! A continuation of last Monday.
You can refer to the charts by scrolling below.
Biosensors, Semb Marine, SPH & TAC are some of my top picks that were spot on! I still have many in the list. Scroll down to see more.
SIMSCI: After opening lower and touched a low of 270.1, it rebounded strongly and tested the high of 274.7 before closing at 273.6 on a 3.6 million volume. This forms a hammer with volume. It signifies that the buyers overwhelmed the sellers and the latter could not keep the simci at the low. Very bullish candle formation. I had anticipated a closing of better than 2714 but this mad bull rush really caught me by surprise.....a very pleasant surprise. :)
Quickly go through the charts drawn earlier, It's grow money time! :D
