Market Directions for a start

A look at the STI weekly chart found bearish divergence in indicators. Market may pull back further. 3458 should hold for now as we enter the earnings season. Nikkei will face resistance around 18223. As for HSI, 21052 to 21256 should offer very good support. DJ's support around 13,258 held steady last week. Resistance to beat will be 13,700 thereabts. I would love to see US form base around this level and that STI trades sideways to form a base. Trading sideways shakes out weak holders and contra players and we will have supply of buyers ready to enter the market when good earnings are announced. This said, the only time i will break my bank to buy more will be when I see support holds.

Sector wise, without a doubt something is brewing with Yongnam. IR contract was supposed to be awarded by end of June but no news yet. From my XPertTrader screening, a specific industry came out prominently...synthetic leather manufacture from PRC. Chinasky, CG Tech and SinoTech. All showed buying interest returned on Friday. I shall see how Monday opens and the buying interest before commiting my funds.

GrowMoney Growth Fund
CSC
YongNam
Jasper
HLH
Noble Grp
Swiber
StraitsAsia

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