Sunday, May 24, 2009

Offshore laggards

Nothing to shout about at Friday's closing. Especially how Dow gave way in the final hour. On the hourly chart, i can see lower high already formed. However i may discount that because it's a public holiday on Monday for US market and thus not trading. Hence traders may opt to square off positions to enjoy the long weekend.

If you look at Cosco, SembMar and Yang Zhi Jiang, you can't help wonder why is this sector not moving? KepCorp already moved off May's low but not the laggards. Either these 3 stocks will be the darling of the market in upcoming sessions or this sector may not be the best for me to get vested.

Other sectors like banking and props seems to be consolidating. It may still be early days to latch onto these sectors.

I will turn cautious and wary of further corrections if stocks test and fail at the previous high in this coming week. I have observed last week that the market seems to be drifting higher and then got sold down quickly. The only positive i take away from it is, there is resiliency in this market... aka refuse to die.

Elder puts it very well, a market can fall on its own weight. Let us see how the market trades on Monday.

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