Now we know why S-shares were so hot over last 2 weeks. China side has reduced trading fees. This is one of my favourite tagline at seminar, price moves ahead of news. I still remember there was a time when i was speaking at NUS, one student ask me, how come the price moves up before the news is known? I can only smile and wink at them.... yes insider trading is illegal... but does it happen in the market? Up to your imagination i told them. *I had to be politically right* keke However for the rest of us, i'm sure we know this is why Technical Analysis works. When the buying starts, it leaves trail.
No wonder every night when i screen one of my MUST screen rules using XPertTrader, big volume, plenty of china stocks keep coming up. All the 4r1g signals work.
Today's closing was not bullish. We saw alot of stocks closing off the high. This is where we should start looking at heavy dumping at this level. When i screened for big volume, this time round i have 54 stocks appearing in my list!!! Usual will see twenties. What's more, most of them are China stocks. This is like a warning sign flashing in front of me.
As for Dow, if we see 12,650 trades, there could be immediate weakness to be wary of.
So any chance to load up shares? I think we need to observe how the market trades tomorrow. It is normal for market to retrace after strong gains. However, i noted that STI is unable to break above 3186 this week. Furthermore, today it closed a shooting star... ugly!
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
