Wednesday, April 08, 2009

Banks and Props leading the way down

Day two of selling... this is something deviated from the last 4 weeks pattern. Then we pulled back shallow and then rallied ferociously. Banks and Properties counters showing bearish divergence and indeed they fallen. Though i had not taken a position, i keep a keen following on the technicals in this two sectors. It is of high interest for me to see that they have succummb to technical weakness. This is where i should be able to determine if market is going into an upward trend or downward trend depending on whether those support levels will hold.

I have this temptation to start shorting stocks which were resisted at the 200-MA line. The first result from Alcoa disappointed market... thus those bullish talk last 4 weeks seems to be too early once again. US banks results reporting may be key to what the market is looking at... should they lose less money than expected, i fear the market may go crazy once again. As of now, i keep seeing some of these US banks/investment banks still holding well despite selling in the US market. Nan dao... this sector will once again lead us up after their reporting?

As for indices, it's normal to see this pull back. The key thing i will be observing is if they will be supported. If we crack through support, then it may resume the downward trend. Otherwise it is important to observe the first sign of an upward trend in the making. When we trade trends, it will be very profitable to get in at the infancy stage of the trend.

I am on leave for the rest of the week.... still deciding which nearby island should i hole up in.... weather hasn't been kind and it keeps raining... my beach holiday seems to be jeopardised.. whereever i decide to go for a short trip, that place must have.... internet connection!! :D My idea of this holiday.... daytime laze on the beach formulating trading ideas... night time watch US market... swee!

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