Market will not Defy Gravity

As happy as I am with my current holdings, I must not slip into complacency. Although our market closed firm today, my mind was on HSI & Nikkei. Both closed sharly lower today. A quick check on HSI's chart, the retracement is still within what I will regard as normal zone because the support line was not broken. However, we risk a possible hanging man or bearish piercing candlestick formation on the weekly chart. This is only used as a guide because individual stock can remain firm despite index not doing well. Incase you are still judging your china stocks based on STI, please look at HSI as well. There is without a doubt at all there are room to fall in the market, the fall doesn't worry me that much, because in a healthy rally, there must be some selling. As long as support line doesn't break, the retracement can offer great opportunities!


Straits Times Index. Bullish cutover of moving average 100 and 50. But the RSI divergence is an eyesore.


ChinaHong looks like a breakout, but with HSI deep red, I will apply some common sense here. I will pull the trigger when the coast is clear. The other stock to watch out for will be Hongguo.

Tomorrow is the second time i'm stepping out of this cyberspace! Actually there will be more in the future as ChartNexus will be engaging me more often after my successful maiden workshop held in May '06. Back then, I thought gone case liao, so suay, bo organise workshop, market bo crash, send out invites only, market crash and I thought turn out will be bad! haha But 27 brave souls still made their way there and eager to learn! Same thing for tomorrow, I will deliver my power pack contents and you guys will walk away full of trading ideas! haha For those who are still considering, here's the link to my course outline once again, http://www.chartnexus.com/events/more_details.php?eid=107

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.