Tuesday, July 10, 2007

A Swiberish Good Time

I am seeing bearish divergence in the indicators on STI's weekly chart. Also, the lacklustre performance of some of the bluechips caught my attention. Wall street has this saying, if the leaders are not leading the market, the second liners won't be able to lead for long. With this information in my mind, i shall be cautious. Bearish divergence is a warning siren. I remember not paying attention to this and got punished during my early days in trading. It is important to track how the market plays out for the rest of the week. It's either market pulls back for a correction, or it trades sideways to neutralise the divergence.

Crude oil has silently climbed to US$72 per barrel! All the oil and gas related stocks could be in play. So are those from the alternate fuel industry.

We opened higher and close lower today, this will certainly squeeze contra players. If market doesn't rebound in the next 3 days, more selling will ensue as contra players liquidate their positions due to contra due.

If market is firm and today is the lowest for the week by Thursday, it could be a good opportunity to load up.

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CSC
YongNam
Jasper
HLH
Noble Grp
Swiber
StraitsAsia
HiapSeng

* Added HiapSeng last week

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