More Downsides to Endure

Straits Time	3439.21	-38.38	(-1.10%)
BT-SRI	1730.50	-21.55	(-1.23%)
UOB Sesdaq	214.21	-4.24	(-1.94%)
KLSE Comp	1354.67	-10.61	(-0.78%)
Nikkei 225	17656.84	-12.99	(-0.07%)
Hang Seng	20706.35	-190.29	(-0.91%)

Asia Market corrected as expected. Based on the market sentiment, there will be more red days than green. The bull is currently tired and exhausted. As you can see from the above, the corrections are rather small but its believed that this trend will continue.

STI - Most of the favoured or rather speculative stocks had corrected greatly. I cannot tell which sector actually survived. But what I found was stocks like Armstrong and HLG usually goes up when the market are down. There could be some reason behind this. Either they are pushed or many found them to be undervalued. Further downsides for most speculative stocks are expected as weak hands are struggling to let go once the trading bell starts tomorrow followed by a slight recovery in the late afternoon.

Any opinion herein is made on a general basis and is not an inducement to trade.

A Directionless Market Ahead

I had a game of Mahjong last night and we played two rounds. I was quite lucky and won quite alot during the first round but when the second round ended, I only won $10. Not to digress too much, my point here is that this is very similar to what we will be going through this May. Profit will be slashed.

Nymex Crude dropped 1.26 to its current 61.93. The stock market had been largely punted on commodities speculations which hands holding on to it are contra and mid term players. The initial buy up are usually spiked by institution investors. There is a strong believe that they are going to exit next week since sentiment are directionless.

No short term speculation for the time being but buying opportunity will be coming soon.

Long term wise, I will be holding on to strong dividend play - Sembcorp and Comfortdelgro. Will be waiting for attractive discount available in the market soon.

Fund investment maintained hold on Asia equity funds during this period. Dollar cost average if necessary but stronger chips should be able to hold in this market looming with uncertainties.

Any opinion herein is made on a general basis and is not an inducement to trade.

Rebound, Rally or Dead Cat Bounce

STI rebounded remarkably to 3417.81 which is somewhat near to last Thursday's height. News are coming in positively. USD rebounded substantially with payroll index speculation.

What will be the direction from here? Many would ask. The May effect has not been triggered but we are just at the start of the month. I would call this a temporary rally rather than dead cat bounce. Technically speaking if it hits last Thursday's region means it may be a short term double top which may see a slight decline tomorrow and a slight rebound the day after. Well, this is provided that there are no sudden impactful news coming up and I would term this as a relatively soft landing this week.

Rowsley in play while sentiment on Lottvis seems mixed. This period may not favour speculators but Rowsley at its current 0.315 seems quite safe with strong support at 0.295. Energy, metal and resource stocks rocketed but beware of a immediate correction soon. Ferrochina and Straits Asia are highly speculative and behind the current price seems to be weak hands.

Long term value investing preferred. Bargain hunting ahead. Maintained hold on defensive counters: Sembcorp and Comfortdelgro. Cosco just secured a contract recently may see this counter going on a uptrend after today's correction of 9 cts while STX PO going at a constant pace.

KLSE shed 2.52 while the rest of Asia's market inclined. It can be considered mixed which may trigger a uptrend market tomorrow. On fund's end, Korea Composite still seems attractive while collecting more units of funds this month may be the only chance before the next wave of markets rally resume.

Any opinion herein is made on a general basis and is not an inducement to trade.

Market Is Going Up

Market Snapshots - Wall Street is positive on data release. Earning of most listed China stocks doubles. China is also taking a swift stance of asking bank to increase their reserve to curb from ecomony overheat. It may sounds neutrel but its a positive news. Big player are going to buy tomorrow. Gold price is climbing and seems to be revisiting its April 2007 height.

Most people are trying to talk down the market and people are going to sell. True enough, they are going to sell or short but to find themselves unable to cover. Tomorrow is eve of holiday which is a day of green based on my experience, though many people say profit taking will take place. Personal sensing is that Shanghai Composite and Hang Seng is going pull STI up based on their profit results and they are in a euphoric buying mood.

Midweek ahead, overall sentiment will be hard to say as buying will be exhausted and on supposition, global market subsequently turned into a mixed market trend as Sell In May Effect sets in. But its going to be sudden, unexpected and unpredictable.

Trade with caution and care.

Any opinion herein is made on a general basis and is not an inducement to trade.

A Volatile Week Indeed; A Tough Week Ahead

STI is now 3398.60 and HSI is 20526.50. Market has turned into a correction and profit taking trend despite in positive light.

May is coming and you know what they say about May - "Sell in May and go away". Largely based on statistic, May is not a good month to invest or speculate. Although it maybe a good month to go short or long term value buying.

Lottvis recovered in midweek but fell back to 0.570 region. Rowsley rose slightly from midweek up going movement and is currently resisted in the 0.300 point. Large volume of stocks changing hands. Most of the China high potential stocks has corrected. Hongguo and Jiutian which were my favorite corrected substantially. Watch out for Swiber as price below 1.68 present a buying opportunity.

Long term, position maintained on Sembcorp and Comfortdelgro. I believe its also time to pick up some property stocks. In the monitoring will be Sim Lian and Fragrance.

At institutional end, Korea and Thailand emerging equity funds are worth a second thought and look. Looking ahead Thailand is calling for a election during end of this year whilst Kospi has sheded so much so its largely believed to be extremely attractive. Bought substantially on this two funds this week. Currently holding on to Europe, Greater China, Malaysia and Singapore/Malaysia funds, though upside is positively expected but the returns may be limited. It is good to diversified, expect to realise profit once hit 25% ROI by January 2008 for a slight reposition if required.

Any opinion herein is made on a general basis and is not an inducement to trade.

Early Rally Insignificant As HSI Turns Red

As soon as the trading bell started for STI, a big jump upwards, most counters gaped up. But as soon as after the lunch break, STI lost momentum and went down. Most counters fell in reacting to HSI's fall.

Dow's Friday rally was ignored? My answer will be yes and no. The market have been reacting somewhat more prompt to bad news and less rallied when there were good news. Dow's Friday rally was not cancelled. Sentiment still positive. Institutions will proved many wrong tomorrow when trading starts because they do not chase after price. They always buy when people thought that price are not sustaining. The myth of T+3 sell down does not necessary be accurate, as everyday could be T, unless an unusual up movement with huge volume or RSI overbought indications.

Short term, bullish on Lottvis, Freightlink, Eagles and Hongguo. Lottvis will definitely recover after today's sell down, looks more likely that it had been shorted than sell down. Rowsley will resume up gaping movement. Freightlink and Eagles, top volume stocks will be bought up with a moderate gain of less than 3 cts. Hongguo and Jiutian will resume up movement on small volume.

Long term wise, bought Transport stock, Comfortdelgro today and also still holding on to Sembcorp. Outlook remain positive and with high possibility of upside potential by next Capricorn effect.

Any opinion herein is made on a general basis and is not an inducement to trade.

Overheating Engine Takes A Cool Down

Thursday sell down was soon forgotten as Friday bounced back on a strong session. Many counters that slided on Thursday recovered considerably. Global market looking overheated as Thursday sizzles seems healthy, although those who had joined in the panic selling would not be very encouraged. Those holding on to CFD account are waiting for sell down so that they could get a piece of 'short' from the market. Looks like the shortist are not going to have fun as market indexes around the world especially Asia is going to uncharted region.

Positive sentiment, higher profits and new ecomonic hope and ever appearing catalysts amid Iran uncertainties.

Pennies in focus. Up next week, still in play will be Lottvis. Just how high is high for this baby? You would ask. I guess the new term TP should be nothing less than $1. Other stocks in store next week, Rowsley (Similiar to Lottvis in business nature), Freightlink and Eagles. In the higher price tag's end, Jiutian and Hongguo may break further height as strong hands seems holding tight on positive climate, especially after a big market sizzle on Thursday.

Long term wise, Rotary is rather stagnant, so I took profit today. Sembcorp is still holding strong just below $5, next wave should come in two weeks. Stable stocks to look at is HG Metal, Comfortdelgro and STX PO. Just have to look at how market open on Monday which is most probably a 'green' day. Comfortdelgro seems to have break away from crude price's movement these days and is going upwards.

Any opinion herein is made on a general basis and is not an inducement to trade.