Sunday, October 18, 2009

Look out for the next hot sector

Stubborn 2700 was taken down finally last week. It is highly important to me that we stay above it this coming week. What we are seeing now is that it is coming down to test the previous resistance as support. Faith will be tested. Should investors sell in earnest, then it may bring us below 2700 once again. What i think is we need a strong upward movement motivated by a strong Dow to set us up for an uptrend. Plenty of important results are up next. It seems like companies are continuing to beat estimates. This sets me thinking....

I have one trading idea to share. That is to search for the sector which delivered the most solid result last reporting quater. Their charts may be consolidating now waiting for the next annoucement and we must beat the market to it by discovering it and buy it first. For i notice, before the result is anounced, the share price may have already rallied.

I am still holding on to my CDL and bought Hyflux during last week's weakness. I akin Hyflux's movement to be that of a healthy retracement to test resistance turn support after A-Triangle breakout. CDL though still on an uptrend and from the charts, nothing too bearish as yet. Keeping my fingers crossed that Monday's weakness will not be too large a magnitude. If it is just morning sickness and afternoon glory, perhaps, it is a bullish sign.

The hunt for the next hot sector is on!

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