Thursday, September 22, 2005

Rita & Oil price haunts Market

Our market could not take the Regional bad sentiment towards Hurricane Rita and Oil price hike. The bullish Tuesday was not followed by strong buying. Instead we have 2 days of mixed trading. I think market over reacted on hurricane Rita and higher oil price. Let me borrow a quote from my trading Kaki, " When Hurricane Katrina stormed gulf coast and destroyed rigs and stopped supply, oil price spiked to US$70. But did you realise after the damage has been confirmed, oil price retraced all the way down to US$63. " I thought how true. Now the oil price starts to crawl up again amidst fear of Rita. Something very similar to Katrina. When I look at our market. Yes, there were selling pressure all around. But there were also strong buying! If it's really that bad, why are there strong buyers? Think about it. I remain positive that the major uptrend is still intact.

2281 should be the support for STI, break that, and be ready to use your parachute. On the weekly MacD histogram, it has not gone below zero line. Once the histogram slopes up, i will alert everyone here. It could signal the return of the bulls!

Special mention of comfortdelgro. Much forgotten stock, it is making a comeback! Check out the charts below. Semb Marine, a great pick from GrowMoney Blog, check it out! :D

Semb Marine Revisited

Keppel Land

Comfortdelgro on the daily chart

Comfort DelGro on the weekly chart