After posing a poorer than expected non oil exports in Sept, our market gave way...simply gave way. I'm sure lots of people are moaning and groaning in pain. I am one of them, having caught cosco babies at 0.380 and had to cut at 0.335. However I only buy small lots. I realised catching a bottome is very risky as the low can go lower, hence i attempted small. We are now very near the uptrend major support for STI at 2280. Break that, and we risk a bearish reversal. Our index refuse to break the 2325 resistance convincingly despite a better 3Q. So now we knew why last week we ended so badly. The smart money had already left out market last week and watch us, the naive retailers sell on news (poor non oil exports). Trying to recall I think last week's selling should have served warning. While the mini rally in US market on Friday could have caused many to believe that we will have a good week, how wrong we were. Market is never that easy! With the econ data coming through at noon. The way the stocks refuse to rally, the signs were there. Remember, smart money are always first to the information.
The current STI is trading near the support line, this is a very good risk/reward spot to fish. Upside will be a rally to 2325 or cut once 2280 is broken.
Crude oil price went up a dollar at the time of my blogging. It was reported that a third hurricance could be coming towards Gulf coast again! Amazing! How unlucky can US get???
And for those who believed in Astrology, a fellow astrology analyst shared in ShareInvestor forum that 17th Oct was an eclipse and we truly saw market tanked. But funny, why only Sinapore market got hit. Anyway, there will be a bradley turn date on the 21st Oct. This turn is a major turn for stock market.
As for Simsci, I had adopted the fish at bottom or buy at breakout strategy. Here are the highs and lows of 20 and 50 days period.
20 days
High: 279.9
Low: 269.0
50 days
High: 282.4
Low: 267.5
