Thursday, November 09, 2006

STI climbs higher despite profit takings

STI is nearing record high once again. How come i see so many unhappy faces? With market trading at highs, we should all be cheering happily. But really, profit taking was the theme whole week and any rebound became instant profit takings. I sense there was no confidence in the market. Plenty of ulu stocks hogged the top volume. A sign i never liked. We all know the market is going to correct, but somehow i feel it hasn't happen yet. HSI if it doesn't close above 19,000, it risk a very bad candle formation on the weekly chart. Nikkei in contrast, could be forming a bottom on the weekly chart. Dow without saying is at another all time high. But what's the use? Rally by Dow has been ignored by our local bourse. But come to think of it, it is better this way because then we won't have exuberence and without that, it is unlikely market is going to crash big time.

My strategy for the current market will be 隔岸观火, "Observing the fire from the other side of the river". I have shortlisted 2 stocks to watch tomorrow, F&N and Gallant.

Ladies and gentlemen, let me introduce you to a system i developed using the MacD Histogram. The results from backtesting is more than encouraging! As soon as i finalise the testing, I shall load it up to XPertTrader Library.

We still have about 3 seats left for the Technical Analysis course titled, "Cracking the Stock Market Code". If you have not signed up for the course, please do not forget to do so! See you there!

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.