After tracking the rebound for 2 weeks, as we enter into the third week, it is time to pick the sector i will be invested in. Once I am confident of the market direction, this is the sector i will build my new portfolio around. From this sector, i will then look for the leader by my own definitions. Oil and gas suppliers looks good and constructions, it will be interesting to see if there is any follow through buying since they only started to rumble last week. I treat today's no follow through as an indication that there are plenty of selling still.
Banks and Properties are the 2 sectors i will also scrutinise closely. I am taking a contrarian view here because it is too obvious that these 2 sectors will be under pressure. Using technical analysis, i will follow the smart money and avoid conventional thinking. Should smart money began to buy, i will follow too. But right now, i'm happier to stay sidelined.
Recently, i managed to devised a XP screening rule to pick up possible short term price patterns for swing trading. I think in this month's issue of SmartInvestor, I had written about that as well as taught this topic at ChartNexus's monthly event as SGX Auditorium.
I will be tracking 3 stocks for possible swing trades, TiongWoon, Adv Hldings, StraitsAsia, OrientCent.
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
