Sunday, September 17, 2006

Get ready to rally!

Nikkei's strong closing caught my eyes and I went for the HSI Call warrants. My reasons for buying were, Market had a chance to really correct for this week but the underlying tone is firm with plenty of buying at support, many stocks refuse to crash. The weekly chart of all indices threaten to be bearish but most finish without bearish confirmation. Friday's night CPI was good, suggesting a soft landing of the US Economy was on track. Market will be anticipating an unrevised interest rate by Ben on 20th Sept. With US market finishing up modestly, I would expect HSI to open higher, but how it will perform for the day, remain to be seen. Oil goes lower and this could suggest more downside for oil-related stocks.

I heard Baltic rate is easing off, NOL and STX should benefit. But i rather wait for the results to be in and affirm. Nasty profit warnings from Bio-Treat and Magnecomp remains fresh on my mind.

Looking back on our STI, I think upside is coming. So far the rally has selling thus creating a very healthy higher highs, higher lows. The past week closed a small gap and rebounded off it. 2535 there abouts will be the level to test and break.

On my radar, I have got Capitaland, Olam and Midas. All 3 companies registered good growth and results. Chartwise, breakouts beckon!

DMX - I bottom picked this stock at 0.665 as it's close to it's 52 weeks low. It's recent result showed good business growth and it secures multiple contracts over the last few weeks. Chart wise, selling seems to be drying up. My target is for it to register another solid result and thus send the stock higher. Best is an international investment write some reports. Meanwhile, into the cupboard it goes.

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.