What do you see in a market when they rally on lighter volume? Especially if they retest the previous high on lesser volume? With major dow components reporting results, this could be a turbulent week. According to the news, market is looking for better revenue and not just better profit margins from reducing expenses. It will be very obvious if i see a candlestick reversal pattern right at this level. It will mimic summer'08. Financial shares seem to be weak and no sign of life as yet. Properties still lacklustre.. they exhibits the rebound with lower volume mostly. With these two sectors resting.. it's no wonder we are still shy of 2700.
If you look at STI's chart, each day we gap up only to close weaker. Is this persistent selling? If we don't stay afloat 20MA, this may be where market test 2520. Otherwise, i will take the next higher low as another cue to add more long positions in this bull market. My CDL finally broke higher. I set my sight at 1.80 and applying a trailing stop incase my double top premonition happens. I am still on a lookout for my second trade. Business travel is taking alot of my time this month and hopefully when the signal comes, i am at a location with wi-fi.
GrowMoney Quickpicks
ChinaEratat
LionAPac
I found the above stocks with good trending traits. But fundamentally, i don't see what could be the catalyst for it to go higher. I read a trading magazine lately and it said 50% depends on market direction, 30% on sector/industry and 20% is picking the stock. Thus, the two stocks above... actually i don't see any reason for them to head higher other than from charts. Though at times, charts are painted by CKs. Thus i prefer to trade stocks with fundamentals which gives me a safety net.
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