MACD 股市投资法门

丰益国际显清仓现象

2010-09-26T14:30:00.001+08:00

丰益的股价刚从一个三角图形中走出，显示清仓现象。什么是清仓呢？

清仓指的是长期投资者套利并减少持有的股数。

现在价钱停在200日平均移动线。这是一个很重要的点。200日移动线是长期投资者常用的技术分析工具。长期投资者用200日线衡量一支股的长期趋势。只要股价保持在200日线已上，便受到支持。

清仓或支持？有待观察

把以上两个现象放在一起，股民应该这样看待：

200日平均移动线提供支持，在良好的市场环境里，股价应从这个点回弹。
如果股价掉破200日线并且有交易量增加的现象，那表示三角图形的‘清仓’现象无误。那么持有丰益国际股票的股民应该小心处理。

Sunvic near 3-year high following 3 days of high volume rally

2010-09-12T11:05:00.000+08:00

Sunvic near 3-year high following 3 days of high volume rally

Raffles Education finds footing at June low

2010-09-06T21:42:00.000+08:00

Raffles Education finds footing at June low

海峡指数看起来强稳，可能创新高

2010-09-04T17:04:00.000+08:00

Cup and handle?

近来新加坡海峡指数从图表的角度看起来比美国道琼斯指数强稳。这不只显示美国经济疲弱，也意味亚洲经济有良好的基础，资金会不断地流入亚洲股市。

Wheelock Properties stock declines in increasing volume

2010-08-14T16:23:00.002+08:00

Wheelock is now trading both in a lower price level and decline with high volume at the same time. Volume is an indication of market participation so in this situation is a bearish development.

Other stocks to watch include Genting HK and Technics Oil & Gas - both of which are rallying strongly - as well as Guocoleisure. The latter could be building a base for later gains.

Price declining with high volume is a negative development；会德丰产业显示优热现象

Dow meets resistance

2010-03-04T16:42:00.000+08:00

Caterpillar Confluence

2010-02-24T14:20:00.000+08:00

A nice set of trendlines have now defined the movement of Caterpillar. It has done a couple of pullbacks and appear ready for a retracement from its rally. Hell - it might be even a reversal. Last night's action completes an evening star pattern.

STI losing momentum

2010-01-08T23:42:00.003+08:00

While the Straites Times Index continues its uptrend, the MACD indicator shows decling momentum. MACD or Moving Average Convergence Divergence is a 'momentum indicator'. The MACD itself is plotted based on 2 moving averages. It can be used many ways but one of the way is to look for divergence.

What is divergence? When price makes a new high but the MACD makes a lower high, there is a divergence. This indicates that momentum is being lost and that a change in direction might be coming soon.

Professional traders can use this momentum to find profit taking points or even take a contrarian view. However divergence must be confirmed with a number of conditions. This is because many divergences can happen before price changes.

China Green Agriculture base building

2010-01-06T20:57:00.003+08:00

Bought into this 2 days ago at the morning star signal.

I like the way this stock built 'stairs' for the way up. The stair building represents a sort of consolidation where investors and traders were able to find support in order to do a low risk trade.

With global warming set to deliver a terrible blow to global food supplies, this fertilizer stock may be interesting to check up.

Here's what Yahoo! Finance says about its market cap

Finding STI components a frustrating exercise

2009-12-30T20:54:00.003+08:00

In the respect, Yahoo Finance is doing a better job than SGX. It is just almost impossible to find any information at the latter's website. Whereas when I typed in 'STI component' in the Google search engine, the link to Yahoo turns up.

http://sg.finance.yahoo.com/q/cp?s=^STI

What Makes Prices Move? | Bradley Gareiss | FX360®

2009-12-21T17:32:00.000+08:00

What Makes Prices Move? | Bradley Gareiss | FX360®

Is Swiber pattern accumulaton or distribution?

2009-11-25T16:36:00.003+08:00

Chart patterns fall into 3 categories:

Continuation
Reversal
Both of the above

Symmetrical triangles like the one printed on Swiber chart falls into the third category. This type of chart pattern can show either accumulation by the market or distribution. Usually we need the market to 'show hand' before we can tell. The support and resistance provides clues to how traders can manage reward and risk.

Various divergences in Dow

2009-11-22T08:40:00.004+08:00

Despite the Dow Jones Industrial Average continue to rally, we can see various hints that a turning point may be looming. There are six (6) basic tenets of the Dow Theory and now two (2) of them support this observation.

Excerpts from Wikipedia on the Dow Theory:

5. Stock market averages must confirm each other

Dow's first stock averages were an index of industrial (manufacturing) companies and rail companies. To Dow, a bull market in industrials could not occur unless the railway average rallied as well, usually first. According to this logic, if manufacturers' profits are rising, it follows that they are producing more. If they produce more, then they have to ship more goods to consumers. Hence, if an investor is looking for signs of health in manufacturers, he or she should look at the performance of the companies that ship the output of them to market, the railroads. The two averages should be moving in the same direction. When the performance of the averages diverge, it is a warning that change is in the air.

6. Trends are confirmed by volume

Dow believed that volume confirmed price trends. When prices move on low volume, there could be many different explanations why. An overly aggressive seller could be present for example. But when price movements are accompanied by high volume, Dow believed this represented the "true" market view. If many participants are active in a particular security, and the price moves significantly in one direction, Dow maintained that this was the direction in which the market anticipated continued movement. To him, it was a signal that a trend is developing.

Coming to our charts, we can see the following divergences:

As the Dow Jones Industrial Average makes new highs, the Dow Transport and I add the Dow Utilities are making both only the same and lower low correspondingly.
The rally in the DJIA is supported only by declining volume. The other two (2) averages are also supported on declining volumes in the rally phase.
MACD shows declining momentum.

21 May 2008 EOD

2008-05-22T00:34:00.003+08:00

5JS - IndoAgri Resources - SGD 2.57
H17 - Hi-P International - SGD 0.58

Screened with Amibroker. Both long and short signals may be included.

Swing trading ideas using real-time intraday chart

2008-05-09T00:06:00.002+08:00

Binni Ong will be talking about swing trading Singapore stock at the investor seminar at Rock Auditorium this coming Saturday. She will be looking at the use of intraday charts.

Details here.

07 May 2008 EOD

2008-05-07T23:46:00.003+08:00

B2F - MobileOne Ltd - SGD 1.94
K50 - Kim Eng Securities - SGD 2.10
R07 - Rotary Engineering - SGD 0.95
W81 - Sky China Petroleum Svcs - SGD 0.35

Screened with Amibroker. Both long and short signals may be included.

Baker Technology rally with heavy volume on rumours

2008-05-07T00:00:00.004+08:00

It broke a long downward trendline with heavy volume. Weekly chart shows a triangle pattern with a base at SGD0.24. Nearer support at 0.275.

05 May 2008 EOD

2008-05-05T23:40:00.001+08:00

E6D - Raffles Education - SGD 1.23
M35 - Wheelock Properties - SGD 2.20

Screened with Amibroker. Both long and short signals may be included.

Pay $4k for 'get rich' trading tips

2008-05-05T14:22:00.002+08:00

May 4, 2008

Investment seminars claim it's easy to make big bucks, but how good is the promise?
By Nur Dianah Suhaimi

If you are clueless about the bulls and bears, and about forex markets and options trading, but still want to make big profits, some catchy advertisements promise help.

The pitch of the ads, placed in newspapers here, includes 'Even a newbie can make thousands of dollars!' and 'Forex can make huge $$$$$$$$$!'.

'Preview' seminars are free, but not the courses that invariably follow, which can cost thousands of dollars.

But professional traders interviewed say it is impossible to become an expert trader overnight, and the Consumers Association of Singapore (Case) has received two complaints about these seminars.

So what exactly happens at these events?

On a recent weekday night from 7 to 10pm, The Sunday Times joined some 100 people at a preview seminar in a room in Parkview Square.

The speaker, predicting tough times in a United States-led recession, proffered options trading as a panacea.

In a nutshell, options trading involves strategies to buy or sell shares at a later date at pre-determined prices. Profits or losses depend on the trader's pricing strategy.

The speaker cited examples of ordinary people who chalked up more than 7,000 per cent in profits through options trading. At the end of the three hours, the audience was invited to attend a three-day course conducted by the same speaker. Cost: $3,995.

Each day, at least five such speakers advertise their free preview seminars in newspapers.
Some of the ads feature testimonials from ordinary folk who earned big bucks thanks to these free seminars and the courses, which can cost up to $5,000.

The Sunday Times spoke to 20 people who had attended previews, although not all signed up for the courses. Only six said they had benefited.

Mr D. Wong, 33, attended a preview seminar and was urged to pay more than $4,000 for an options trading course two years ago. He refused as he was sceptical about their claims that there are 'easy ways to make money'.

Businessman T.H. Lee, 42, spent $3,600 on a forex course last year, but said he learnt nothing. 'If there are profits, they are very minimal,' said Mr Lee, whose losses have totalled $2,000 so far.

Mr S. Russell, 40, an options trader with three years' experience, and who has attended some of these seminars, said they merely sell hope.

'The tactics they teach don't really work. At least 99 per cent will get slaughtered and lose money to the trading experts because they are not equipped.'

But businessman Clifton Tang, 38, is one of the luckier ones who made some money. He paid $3,800 for a forex course in May last year and has since earned enough to recoup his fees.
'I really studied and practised hard for six months to earn this money,' he said.

In March last year, 38 people who attended options trading courses conducted by Freely Business School went to the Small Claims Tribunal to seek refunds for more than $3,000 in course fees that each of them had paid.

In their joint claim, they said Freely 'over-promised but under-delivered' in its courses.
Freely has since filed a writ of summons against 17 of them, alleging that they conspired to disparage, disrupt and destroy the company's business operations.

Case has received two complaints. A preview seminar participant complained about being exposed to hard-selling tactics. The other complainant said he paid $3,000 for a two-day investment course which was misleading.

Mr Rafee Salleh, president of the Option Traders Club of Singapore - whose members include commodities, futures, forex and equity traders - said it is impossible to be an expert trader overnight.

'Any kind of trading involves a lot of hard work, preparation and practice,' he said.
Retiree Steven Lee, 65, who started trading two years ago, felt rookie traders should buy some guide books instead of spending thousands on courses. 'You can even borrow the books from the library or read up online,' he said.

ndianah@sph.com.sg

Have you ever attended any of these preview seminars or courses and have a story to share? Please e-mail suntimes@sph.com.sg

Consider risks

'Very often, the risk is not highlighted. If it is too good to be true, it probably is.' MR SEAH SENG CHOON, executive director of the Consumers Association of Singapore, which has received two complaints about investment courses

Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access

Technical Analysis class conducted for beginners in Mandarin is now recruiting

2008-02-15T15:12:00.003+08:00

The 2-day class is conducted by trainers from TerraSeeds Market Technician Pte Ltd.

Date:

Part 1 - Tuesday 18 March 2008 from 10.00am - 5.00pm
Part 2 - Thursday 20 March 2008 from 10.00am - 5.oopm

Information is available from jishufenxi.blogspot.com

Direction of the market

2008-01-31T11:07:00.000+08:00

We leave questions of where the economy is heading to economists and central bankers but in situations like now, I can't help thinking that those folks are as clueless as everyone else.

What's more, can we expect them to be able to swallow the bitter pill and do what's right or push the issue unitl next time?

Its been 3 maybe 4 years since we heard that USA has been printing funny money and running fiscally unsound policies. There was even a short while when some famous traders were famously short the US dollar and even faboulously lost money. What if they were right afterall?

Here's my small man-on-the-street take of the whole thing:

1. US is trying to grow at all cost but forgets that they are doing this at the expense of everyone else including her own citizens. Hey you folks need to re-define your concept of global citizen and stop running around invading countries in the name of WMDs.

2. The perhaps right way to deal with this situation is to let the economic bubble blow up rather than try to delay it. Maybe even a soft landing wouldn't do.

3. We have not seen the end to this nonsense and so it might spill to the rest of us. Remember the 90s? 1996 was a good year for Asia but the stock market peaked then. Did we know that the Asian Financial Crisis will bang in our face in August 97? Are we going to see a massive blow up somewhere later this year?

Take a look at this:

PAUL B. FARRELL
A mind-blowing machine
In America, land of the bubbles, the next pop will be the biggest
By Paul B. Farrell, MarketWatch
Last update: 1:12 p.m. EST Jan. 29, 2008

ARROYO GRANDE, Calif. (MarketWatch) -- Three cheers! Wall Street's got a new rally song: "I'm dreaming dreams, I'm scheming schemes, I'm building castles high."
Actually it's the 1919 tune that launched the roaring run-up to the '29 crash and the Great Depression. Remember the lyrics: "I'm forever blowing bubbles. Pretty bubbles in the air. They fly so high, nearly reach the sky. Then like my dreams they fade and die."
Key words
Black swan
http://www.investopedia.com/terms/b/blackswan.asp
An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. This term was popularized by Nassim Nicholas Taleb, a finance professor and former Wall Street trader.
Black swan events are typically random and unexpected. For example, the previously successful hedge fund Long Term Capital Management (LTCM) was driven into the ground as a result of the ripple effect caused by the Russian government's debt default. The Russian government's default represents a black swan event because none of LTCM's computer models could have predicted this event and its subsequent effects.
Read also 'black swan theory' on Wikipedia.

Even the software market is hotting up

2008-01-09T12:55:00.000+08:00

Now we all know that many wealth managers and banks are coming to set up shop in Singapore in anticipation of hot money.

We also know that training providers are mushrooming. Just grab a copy of The Straits Times or Business Times and flip the pages (ads selling options courses, fx courses, stock trading course shout for our attention).

Now the charting software brands are also hotting up their fight in many areas. Just take a look at some recent developments:

SI Station by ShareInvestor released its latest version Station V5.2 in October 2007. Besides others, 2 features that might wow users is the 50-Level Market Depth and the Market Scanner.
ChartNexus also launch a new release v2.3 just after the new year 2008. Not that there are any original features to shout about but what could be interesting is that they have added data of stocks listed on the Jakarta Stock Exchange.
Don't blame me for being biased but I always thought that Amibroker is a wonderful software with functionality that may exceed Metastock but one time pricing that is far cheaper than ChartNexus. Now there is another positive development as a Singaporean based reseller has emerged to provide user support and training. This will really just make the software more accessible to locals. Check out http://www.tradertoolz.com/

Technical studies - the pros and cons

2007-12-14T18:43:00.000+08:00

The folks I encounter are a bunch who are pretty obsessed about indicators. Here are some of my observations and experience which I would like to share:

Most if not all technical studies are derived from price and/or volume. Therefore in a manner, all of them are lagging and cannot truly tell us where price is going. On the other hand, the are good because they sort out the volatility in price and give us a means to take a calculated bet.

This is what makes technical studies that look into price levels i.e. support and resistance so powerful.

The ability to forecast S/R levels in advance allows us to make observations and deductions at that level. Based on price behaviour (candlestick emotions), we can deduce to buy breakout or sell a failure.

Here are some technical studies that look into price levels:
1. Moving averages - there are many types
2. Price bands - for example bollinger bands
3. Pivot points
4. Fibonacci
5. Average range

I have listed some above and of course the more significant those levels are and the higher the level of confluence, the better.

Some indicators I use and have some faith in is the MACD and Stochastic. MACD is derived from moving averages and are great for determining momentum. The height of the MACD histogram is a brief insight into how much strength there is in a trend. (Consider that for Moving Averages to reverse, how much does price require to change - is a great simplification of how MACD works).

Stochastic is based on another concept. Simply put, it is the consideration of what level of price is in comparison to its hi-lo range over a period of time. Here in is where Stochastic is often misunderstood. In my opinion, price level currently has little meaning to where it may be later unless some other things are considered.

I am aso trying out the CCI which I suspect has some bearing in FX due to the way the market plays price.

Every indicator was derived by its maker for a certain purpose. Therefore how effectively we can use them is not dependent on the number that we can squeeze into our screen but whether we can put together a strategy that employs its strength.

Folks interested to study charts and indicators in depth should really try to understand their role and how a whole picture can be put together. There is no shortcut.

Advertorial: Fibonacci - The Professional Way! It's full of surprises

2007-12-08T09:58:00.000+08:00

TerraSeeds Market Technician has recently soft launch its latest course - Fibonacci - The Professional Way - a new course for use in Singapore & US Stock, forex and futures.
This course is the highlight for Year 2007 and is currently only available to TerraSeeds graduates (those who have attended Practical Technical Analysis (for Novices), MACD High Probability Setups and Stochastic-Candlesticks System).

We would now hear from TerraSeeds Trainer, Binni Ong, on what's in store for the Fibonacci (Fibs) course. A hint, Binni said this: "It's full of surprises!"

This FAQ has been written like a fictional interview manner.

TH (Tiong Hum): Why do you want to launch the Fibonnacci course?

Binni: Fibonnacci is widely used in Stock, Futures, Forex and Commodity Trading. It is very useful to predict potential turning points and is also great for intraday trading. Many students have requested us to share on how to use Fibonacci effectively, as many don't know where to start drawing the 0% and 100% of Fibonacci levels.

TH: Please share with us what will be taught in the Fibonacci course?

Binni: We have came out with a simple, easy way to teach our students how to differentiate when to draw Fibonacci Retracement or Fibonacci Extension. Simple Elliott Wave theories will also be added to enhance the Fibonacci theories. Lastly, students will also be taught a special indicator that complements Fibonacci. Most importantly, we will show them how to use Fibonacci professional - how to differentiate strong versus weak levels etc.

TH: One line to describe what students will learn?

Binni: Fibonacci professionally for Swing Trading in Singapore and US Stock, Futures and Forex.
TH: You were saying that this course is full of surprises, what do you mean?
Binni: Apart from maintaining our comprehensive, extensive and interactive style of teaching, we are going to provide our students (for this special launch) 4 scripts that I have coded. These scripts are only compatible with Amibroker.

TH: What are they?

Binni: Here you go...Attached is a chart on Apple Inc - listed in US market.

A price panel with trade signals (see the blue and green arrows) and a special formulated 'temperature strip'

A price panel to draw Fibonacci Retracement automatically with just one click

A special indicator that complements perfectly with Fibonacci System

Lastly, a screening script that screens and scans for the trade signals produced by the Fibonacci -The Professional Way

TH: Hmm....that's simply fantastic

Binni: I hope that students can learn Fibonacci and use what we have imparted profitably in their trade or investment. We want to educate our students so that they know how to use Fibonacci as a trading system. The price panels and screening script is to make it easier from them to scan through the long list of stocks.

Fibonacci - The Professional Way is a year end highlight for TerraSeeds Market Technician Pte Ltd.

It will be held on 15 Dec 2007 (Saturday) from 9am to 5pm in Singapore Management University, Li Kong Chian School of Business.

To have more information on this class, please click here. Walk-in registration will not be entertained.

2007-12-08T09:47:00.000+08:00

I have neglected this blog. Truth to tell, I have picked up FX trading but are still trying to get the rhythm of things.

As I am purely technical, I have been testing different timeframes and entries using various simple moving averages crosses. The results were reasonably good but a number of trades were harrowing.

Why don't I use fundamentals some might ask. Well I believe strongly in fundamentals. Overtime, values do reflect fundamentals but in the short run my observation is that markets really run on greed and fear. Therefore as a small time trader, I don't have the time and stomach to hang on to large stops hoping for trades to work out. If I want to do that, why not just open a FX fixed deposit account?

With the FX market, I am still using the MACD and stochastic-candlestick systems but one thing is for sure, I have stopped using the screeners. With the few major crosses I am trading, there is really no need.

Advertorial - Catch that 'sweet spot' of profits with Explosive Chart Patterns

2007-11-23T13:43:00.000+08:00

Over decades, market participants observed that recognizable price patterns can be found in the price charts of stocks, futures, forex and commodities. Investors and traders found that trading pattern-based strategies delivered a statistical advantage. By inspecting price patterns to anticipate subsequent movement as well as time entry, investors and traders want to capture that sweet spot that gives the easiest profits.

Illustration: Example of 'head and shoulder' chart pattern in a line chart of AUD/USD currency pair

Each price pattern tells the story of struggle between two groups of participants: buyer and seller. Buyers want price to move upwards and sellers want the other way. The magnitude of rise and fall in price indicates the strength and enthusiasm between both parties.

When both buyers and sellers are enthusiastic, price moves widely in seeming volatile patterns. When both are uncommitted, price tracks narrowly sideways.

At the end of a struggle, the victorious side will push price persistently in their intended directions. The outcome of price struggle forms well-known patterns that investors and traders know, like ‘head and shoulders’, ‘cup and handle’, flags etc.

There are many successful investors and traders that the investing community recognizes. Many of these successful individuals mastered the use of chart patterns to win in the financial markets.

Mastering Chart Patterns

Chart patterns can be mastered in the following manner:

In a consolidation pattern, recognize which party, buyer or seller is likely to win.
Identify price points to enter where risk is low and reward will be sweet.
Identify the best time to enter the side of the dominant group just when the fight is concluded and prices will begin a steep move .
Know how to avoid getting caught in volatile trading.

Illustration

Illustration: EOD chart of Straits Asia

Let’s look at the price chart of Straits Trading which will illustrate these points:

After the end of the subprime-induced sell down in July 2007, Straits Asia formed a series of ‘higher-low’ prices that mark an 'inverted head and shoulders’ pattern.
Sophisticated investors and traders start to suspect that buyers are willing to support the stock prices at consecutively higher levels. There is a likelihood that prices may rally if there are no more sellers at current price levels.
We use our ‘Trade Explosive Chart Patterns’ strategy and note an entry point. This point was identified by a combination of moving averages, volume and a momentum-based indicator that reinforces this strategy.
The buy signal was well defined and a buy set-up at the blue arrow. A sell signal emerged only at the red arrow day.

Like everybody else in the market, we aim to catch that sweet spot of price that gives us the easiest profits without getting trampled or joining the wrong party. We deliver a five hour course that educate you how to identify price patterns and then put in the reinforcements in the form of moving averages, volume and momentum-based indicator.

All this is done in a clear easy to learn manner. The indicator settings can be applied in any charting platform so that you truly master the skill of deciphering price.

Join us on an enriching session of “Trade Explosive Chart Patterns”

We are conducting an interactive course that is loaded with lots of practical case studies on Singapore Stocks. Go through lessons to learn to identify explosive chart pattern using intraday charts as well as additional market information such as 'volume at price’. Best of all, we will provide you a platform that is perfect for this strategy. All participants get free SI Station membership with TA Market Scanner.

The 5-hour course will be conducted on 01 December 2007 (Saturday) from 9am – 2pm. For more information, please visit the course information site here.
For more enquiries, please call Shareinvestor on registration issues at (65) 6220-8807 or Terraseeds on course information at (65) 6492 3196.

Charting Software market share in Singapore

2007-10-31T16:57:00.001+08:00

First of all, the small sample size does not offer conclusive evidence. Therefore the figures are not indicative of market share. It is however interesting and several hypotheses can be formed.

Hypotheses

1. Apart from the graph paper :) thingy, the software listed here are the better known ones.

2. Metastock is not the big brother

3. ChartNexus has penetrated the market - so that does not mean that other software vendors should follow ChartNexus's marketing model i.e. give plenty of free copies, do plenty of seminars, hold courses, get a blogger to use it?

4. Local players like SI Station and TheNextView that seems to be more established need to do a lot more.

Practical considerations when choosing a FX broker

2007-10-31T16:22:00.000+08:00

Interest in online FX trading by individuals are just picking up. It is easy to make such an observation. Looking back 2 years ago, local securities firms did not offer FX trading. When foreign brokers IG Markets and City Index came in to set up shop, they focused on CFD trading. Now we have for FX trading with the following if not more: IG Markets, CMC, Saxo Capital, City Index, Deustche Bank, MF Global and among local brokerages, Philips Securities.

Besides the local offering, commonly known FX brokerages that are based overseas include FXCM, OANDA, Interactive Brokers. These brokerages require your funds to be remitted to them.

There are three (3) considerations for me when I choose an FX broker.

1. The safety of my funds.
2. Trading costs
3. Sophistication of trading platform

1. What I would then be concerned is whether there are any local regulations protecting my funds. Generally where Singapore is concerned, as long as your broker is registered with MAS (Monetary Authority of Singapore), your money should be in a separate account from the brokerage's funds. Following the fall of Refco, this is especially important to consider using a brokerage that is set up in Singapore in order to prevent your hard-earned money from getting stuck. I don't know what the MAS will do to protect my money but having the law on my side is always a good thing.

2. Most brokerages make money from our trading through the spreads. Some brokers like Interactive Brokers charge a fixed commission. They do so for different reasons but the cost of trading can vary. Most individuals encounter FX trading by scalping first. When you scalp, you are looking to earn 8 - 10 pips. It is important then to have as little spread as possible. I do not encourage scalping but it is still feasible to look for a broker that provides lower spreads.

3. Those of us who have encountered trading through the local stock market would be used to the trading platform that our local brokerages provided. How they survived into this century with something so obsolete is beyond me but you should know that online trading with foreign brokerages is fascinating if you just look at the order types available. This is where you can program your trades to happen even when you are sleeping at night.

It is worthwhile to ask the broker you are considering to sign up to let you try their demo account. If they do not, then attend one of their platform training or preview seminars. It worthwhile time spent.

--

Investor Alert website provided by MAS including list of registered financial institutions that can perform broking or other financial activities.

Forex trading is like playing pinball

2007-10-29T23:37:00.000+08:00

I am going to let out a big secret: Forex trading is fun and its just like playing pinball.

Here's how I set up my system.

I use several moving averages supplemented by Fibonacci retracement ratios to establish a road map. Then I look for these levels on different timeframes to find confluence and 'strong points'.

At these strong points, I observe candlesticks to see if the market is following those levels. Fitting in the stochastics, I determine if my best bet is to take with the trend or against the trend. Of course MACD is also good here because while stochastics can determine price relative to previous intervals, MACD measure up or downwards momentum.

The good thing about this system is when you take action at strong points, the cut loss level can be easy to determine and also you will know straight away that you are wrong.

Once a good entry is achieved, the rest is about how much you want to win.

Advertorial - Trading line of thought in an ascending triangle

2007-10-14T16:39:00.000+08:00

14 October 2007

Advertorial - Trading line of thought in an ascending triangle

Inspecting chart patterns is a simple way of understanding price action. Taken to a higher level through practice and application, it can be a profitable and no-fuss way to to trade and invest in the market.

Skeptics probably think that belief in chart patterns is just a kind of stock market superstition. There is really a logical explanation.

Inspecting and understanding price action

Any chart user is looking at a very important piece of information - price level.

Players in any market be it stocks, derivatives, FX or commodities are interested in price. Price forms the basis of support and resistance, trendlines and are used to derive numerous indicators that attempt to simplify price action itself. Therefore inspecting chart patterns is not foolish - a good technical analyst can form a very good conjecture about market action.

Combined with simple algorithm i.e. rules that incorporate trading volume during the same time frame , use of trendlines and add an indicator, the investor or trader can also identify price levels to place low-risk trades and wait for the market to finally show hand.

Example: Line of thought when trading chart patterns

Lets look at the following example of an ascending triangle:

1. Tall bullish candles show that buyers are enthusiastic.

2. Congestion at the high shows profit taking by early bulls while late bulls do not have the energy to drive rally anymore. Chart users will place a horizontal line (green dotted) at the high to show possible resistance.

3. After a sell off, bulls buy here. This low is higher than previous low and shows that market participants agree that price should be higher.

4. Speculators buy up and take profit quickly near top. They do not have energy to bring price higher.

5. Another higher low forms as bulls are not keen to wait till price reaches previous low. Chart users now join the lows at point 3 and 5 with a line (yellow dotted) to anticipate next support.

6. Action is similar to point 4.

7. Action is similar to point 5. The price touching off the yellow dotted line gives credence to it. This means that other chart users are looking at the same price level. Point 7 is also a point to make a low-risk entry as evidence points to support here. A boundary now appears. If price fails and falls below the yellow dotted line, the bull can realize immediately and exit with small loss.

8. Action is similar to point 4 and 6. Bulls who bought at point 7 can sell to take partial or all profit.

9. The yellow dotted line is observed and respected again. Bulls have another low-risk entry.

10. By now we are at the fourth try on the resistance set by point 2. 'Smart money' had the whole of the last 5 months to accumulate at their desired price. They make a push up beyond and late bulls - typically retail investors join in to set high trading volume.

The above illustration describes how any person can be trained to make visual inspection of price and combined with simple rules, correctly identify price boundaries then place trades where risk and probability is well known. Everyone can be 'smart money'. There is no need for anyone to be a 'late bull'.

Join us on an enriching session of “Trade Explosive Chart Patterns”

Best of all, we will provide you a platform that is perfect for this strategy. All participants get free SI Station membership with TA Market Scanner.

The 4.5 hours course will be conducted on 20 October 2007 (Saturday) from 9am – 2pm. For more information, please visit the course information site here. For more information, please call Shareinvestor on registration issues at (65) 6220-8807 or Terraseeds on course information at (65) 6492 3196.

TradeSignum.com available to SGX and Bursa investors and traders

2007-10-14T01:20:00.000+08:00

Hi folks,

Heads up! There is a new kid on the block where charting software is concerned. What's more, its web-based, its free, it comes with adjusted data at no price and it comes with a forum!

According to its website, it is a setup started by 2 Malaysian folks. So naturally they have charts to stocks listed on Bursa Malaysia. The Singapore portal is still new so no surprise if alot of folks have not heard about it.

It means that local players in the charting software market are going to feel the heat.

Now let's do a headcount of commonly encountered products out there:

TheNextView - Modular pricing, provide real-time data, subscription based pricing (product-wise I don't know much else)

SI Station - Modular pricing, provide real-time data, subscription based pricing (not familar with product too)

Metastock - Well-known but hard to use and expensive both in terms of product and support. Requires separate data source. Can put in as many markets as long as you can find data feed. If you attend T3B training, you are required to buy it.

Amibroker - Not as well-known as Metastock but there is now a local reseller. In my opinion extremely powerful and much cheaper than metastock. It is priced one-time, no subscription and has powerful screening and real-time capability (separate data source). Can put in as many markets as long as you can find data. (Got built-in function that pulls free data from 50 exchanges via Yahoo!). Btw someone told me Mr Joe Dinapoli (well-known to Singaporean traders) uses it to trade his eminis. The folks at terraseeds also use it for Singaporean stocks, US stocks, futures and FX.

ChartNexus - Expensive when you consider that it is a new product that is buggy and not powerful. Subscription based pricing.

TradeSignum - Free, web-based ( I will be testing it out)

Choose the right FX broker

2007-10-06T15:13:00.001+08:00

FX trading is becoming popular in Singapore. Now before anyone unwittingly loose money to bad brokers, here is a site that offers some broker reviews. Please exercise your own discretion.

http://www.forexbastards.com/public/forex_broker_reviews

Learn to interpret trend and make decisions yourself

2007-10-06T14:49:00.000+08:00

It is unbelievable how folks can pay top money to pick up a software that tracks the trend. They end up not really understanding what a price trend is all about but rather going through software user training to follow trading arrows.

Price trends are very simple:

A series of higher highers and higher lows make an uptrend. The opposite make a downtrend.

All technical studies are variations of trying to buy/sell breakouts and buy/sell support/resistances. KISS (Keep It Simple Stupid)!

Now if anyone is deterred from putting in time to learn a skill because you feel the price chart is complicated, then realise that when prices are simplified into lines, the highs and lows will be very obvious.

The next time you look for stock market timing courses, please discern between the real trainers and those selling software disguised as training.

Beautiful Women on Screen: Rachel Weisz

2007-09-25T23:42:00.000+08:00

Academy Award and Golden Globe Award winning actress Rachel Weisz is not only beautiful but highly accomplished. Graduated with a Second Upper-Class Honours from Trinity Hall, Cambridge, she starred in a number of movies including The Mummy, The Constant Gardener and Enemy at the Gates.

See Wikipedia on Rachel Weisz

Stochastic Hi-prob trades screened on Amibroker with customized settings.

2007-09-25T23:23:00.000+08:00

Sitra Holdings

Courage Marine and Swissco

FJ Benjamin

As with my usual manner, both long and short signals are included here. Screened with scripts from Ms Binni.

52-week highs and potential cup and handle situations

2007-09-25T10:41:00.000+08:00

Here are some interesting SGX-listed stocks that might be interesting to look at. A low risk entry and confirmation should be observed.

Armstrong (potential cup and handle)
Venture and SIA Engineering (52 week high, multiple tops)

Genting just delivered to some folks an outstanding double bottom play.

Some 'Morning Star'-look alike candlesticks patterns

2007-09-19T22:52:00.000+08:00

These are screened with Miss Binni's script written for Amibroker which is such a wonderful and affordable software (one-time fee).

Kim Eng Securities
UOB Kayhian Securities
Hong Leong Asia
Advance SCT

Using Moving Averages: Charts of Singapore listed Reits look horrible

2007-09-18T21:20:00.000+08:00

Moving averages are good for evaluating relative strength of a stock in comparison. Charting novices often believe falsely that moving averages are a lagging and therefore poor indicator.

The fact that moving averages can give an early indication of potential support and resistance levels gives incalculable advantage to a person who wish to strategise in the market. An added 'plus' is ease of use because only visual inspection is required.

Try the following exercise:

Put in a 200, 100 and 50 moving average into your daily chart. Then inspect the following counters. If you agree with my comments, you have learnt a small way of using moving averages.

Comment: Out of the following list, only Macquarie Meag Prime Reit (P40U) and Suntec (T82U) looks decent technically.

Watchlist of reits:
A. AU8U CapitaRetail
B. AW9U First Real Estate
C. B1ZU Rickmers Maritime
D. B6U First Ship Lease
E. BU5U MacArthurCook Industrial Reit
F. C38U CapitaMall Trust
G. C61U CapitaCommercial
H. J91U Cambridge Industrial
I. M44U MapleTree Logistics Trust
J. p48U Pacific Shipping Trust
K. T82U Suntec Real Estate Inv Trust
L. P40U Macquarie Meag Prime Reit

荧幕上：许晴

2007-09-18T20:59:00.000+08:00

许晴饰演电视连续剧‘清宫风云’里的孝庄文皇后。

许晴官方网

Forex trading is fun

2007-09-18T11:58:00.000+08:00

There is a reason for making few postings in this blog recently.

I am hooked to forex trading and I can say:

It is so fun.
MACD and Stochastics-Candlesticks work so well.
Chart patterns too are indispensable.

It pays when the stock market is generally going no where, there is another market (FX) that is virtually 24 hours. I like 'thinking' activities and it is even more fun when counting money is the way to keep score.

It is different this time

2007-09-17T23:09:00.000+08:00

Bulls like to believe that it is different.

That this time we are really running out of energy. That this time the world economy will decouple from the US and power away with China and India?

Take a look at this:

Goldman Sachs sees $85 a barrel oil by yr-end
By Steve Gelsi
Last Update: 8:58 AM ET Sep 17, 2007

NEW YORK (MarketWatch)
-- Goldman Sachs has upped its oil price outlook to $85 a barrel by the end of 2007 and $95 a barrel for 2008, according to a note published Sunday. Analysts forecast a high risk of a near-term oil price spike of over $90 a barrel.

---

China, India spur economic growth in developing Asia: ADB
17 September 2007 1101 hrs (SST)
ChannelNewsAsia

MANILA : Growth in developing Asian economies should rise more than eight percent this year and next buoyed by strong performances from China and
India, the Asian Development Bank said Monday.
In a regional update, it forecast a modest slowing of growth and warned of higher risk factors next year, arising notably from a tightening in credit markets. "Momentum in (China) and India supports fast growth at the regional level," the Philippines-based lender said, raising the region's gross domestic product (GDP) forecast for this year to 8.3 percent from 7.6 percent.

---

Rising oil prices seen as long-term play on energy

2007-09-14T18:17:00.000+08:00

Managers favoring everything from traditional producers to alternative stocks
By Murray Coleman, MarketWatch
Last Update: 6:45 PM ET Sep 13, 2007

SAN FRANCISCO (MarketWatch) -- With energy prices facing a perfect storm, some money managers are stocking up on some of the biggest and most diversified oil companies in the world, believing that prices could march further above the $80 a barrel record reached this week.

---

Some bullish factors on oil prices:

+ Winter cold
+ Faster than expected decline in Gulf of Mexico production
+ Weak US Dollar reduces profit of oil producers forcing price hike
+ Powering growth in global economy

Some bearish factors:

- Recession lead to decline in demand
- Any rally is not expected to be smooth but highly volative instead

10 September 2007 EOD

2007-09-10T23:44:00.000+08:00

W14 - Japan Land - SGD 0.105 (EMA200 is now very critical)

Screened with Amibroker. Both long and short signals may be included.

Platform for Technical Analysis ideas and investment products

2007-09-09T15:44:00.000+08:00

Introducing to everyone a platform for sharing TA-related ideas:

Chartists United http://www.chartistsunited.com/

It has a very interesting disclaimer, must read.

Technically, laggards in their sector

2007-09-01T18:40:00.000+08:00

Ausgroup - SGD 1.66
See Hup Seng - SGD 0.80
Swiber - SGD 2.84

Compulsory Annuities

2007-08-23T11:04:00.000+08:00

I say NO.

Hurricane season to affect oil production

2007-08-19T15:22:00.000+08:00

It should be no surprise that global warmingwill have a huge impact on the weather. Temperature extremes between the 2 hemispheres will lead to a steep gradient in atmospheric pressure. All that leads to extremely strong winds as air moves from a high pressure region to a low pressure one.

Some headlines:

Haiti braces for Dean; Jamaica under hurricane warning
CNN
Dean is an 'extremely dangerous' Category 4 threat that may become a Cat 5 monster at anytime.

Hurricane Dean batters Dominican Republic with rain
Maximum winds at 150 miles an hour; hurricane called 'extremely dangerous'
MarketWatch

"Personnel have been evacuated from one production platform in the Gulf and two rigs, according to the Interior Department's Minerals Management Service. About 0.8% of the Gulf's total oil production has been shut in, the government said.

The Gulf is home to 834 manned platforms and 101 rigs."

Sepat spawns lethal China tornado
CNN

"BEIJING, China (Reuters) -- Typhoon Sepat swept China's southern coast on Sunday, forcing almost a million people from their homes and spawning a tornado that smashed buildings and killed nine people."

Stochastics-Candlesticks is one of the fastest indicator pair

2007-08-18T11:52:00.000+08:00

Some of my friends asked me which indicator I am using these days. Truth to tell, I am moving away from the MACD.

The Stochastics-Candlesticks System taught by Ms Binni Ong is so fast that sometimes I question the signals. On hindsight, its like 'Wow, I should have followed it!"

As a comparision, I think the MACD is probably a gold retriever, nice, friendly and easy to master but lacking bite. Its perfect for traders and investors' use in the stock market but serious day traders who want something for the futures and forex market would want something with more power.

The stochastics-candlesticks is like a German Shepherd, highly aggressive but can be mastered with training. It is probably not suitable you are lazy and lack the will to learn the control. I am testing it using it for forex trading and its unbelievably reactive.

Learning-wise, the stochastics is a bit difficult but I did not realize candlesticks are so much fun. Most important of all, most indicators are derived from price and lag a little bit no matter how fast but candlesticks are just price itself - totally RAW.

Bullish candlestick pattern on the Straits Times Index (STI)

2007-08-18T10:52:00.000+08:00

In a stunning about turn, we have three pieces of information that may suggest a short term pullback to a resistance level at about 3240 - 3260. This resistance band is derived from the 200-day exponential moving average as well as the 5-day simple average.

We have seen a bullish dragonfly doji at a major index level of 3000. At such a major level, the bullish candlestick with such a long lower tail shows that market bulls are making a major statement about observing the support.
In fact the Dow Jones Industrial Average did such an reversal in mood on Thursday night 16 August 2007 after reaching an intra-day low of 12,500. With the Fed's lowering of the discount rate, the up-move on Friday combined with the Thursday movement to form what we call a bullish reversal candlestick pattern i.e. the Morning Star.
Lastly traders are anticipating intervention from the Bank of Japan (BOJ) will stop the advance of the YEN. While the Japanese currency's rally may be inevitable, at least we might see a 'soft' rally.

Stock traders and investors should anticipate some 'gapping' action. This is not so much from buyers but short covering by sellers who have 'sell to open' orders till open over the weekend. Traders might not be able to participate in the Monday if gapping takes away the meat and pushes prices to resistance level. At least investors who have faithfully held on might enjoy a respite from the selling in the past 4 weeks.

Until names of financial institutions such as hedge funds stop appearing in the credit crisis casualty list, conditions remain unpredictable.

What is the discount rate?

2007-08-17T23:07:00.000+08:00

THE FED
Fed cuts discount rate to 5.75%
Central bank's move aimed at easing credit crunch
By Rex Nutting & Mike Maynard, MarketWatch
Last Update: 10:12 AM ET Aug 17, 2007

What is it?

The discount rate stood at 6.25% previously; it's been set at one percentage point above the federal funds rate.

The discount rate is set by the seven members of the Federal Reserve Board, while the federal funds rate is targeted by the FOMC, which includes all the members of the Fed board, plus five of the 12 regional Fed bank presidents. St. Louis Fed President William Poole, who is a voting member this year, did not participate in the conference call because he was traveling. Dallas Fed President Richard Fisher took his place.

The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from regional Federal Reserve lending facilities. It differs from the key federal funds rate, which is the rate at which private institutions lend to other depository institutions overnight.

Investopedia says:

A decrease in the discount rate makes it cheaper for commercial banks to borrow money, which results in an increase in the supply of money in the economy. Conversely, a raised discount rate will make it more expensive for the banks to borrow, and would thereby decrease the money supply. Funds borrowed from the fed are processed through the discount window and the rate is reviewed every 14 days.

Feedback to the move:

+ "It's conceivable that the Fed's actions today could
go a long way toward restoring liquidity to the markets," said David Greenlaw,
an economist for Morgan Stanley.

- "Markets should not be calmed by this tactic," wrote
Ian Shepherdson, chief U.S. economist for High Frequency Economics. "This move
is not going to provide any relief to the overall economy."

Last nail in the coffin

2007-08-16T22:04:00.000+08:00

Financial markets are tightly woven together. That is why even though I trade primarily futures and stocks, I keep an eye on what the bond, metals, oil and forex markets are saying and right now here's what THEY ARE SAYING:

Stocks, bank sector selldown: Watch it, we don't which of you are holding on to those [CDOS].

Stocks, other sectors: Growth's gone and the bear is here to say.

Forex: I'll pay you back your Yen [unwinding carry trade, paying back those cheap Yen].

Bonds: I want to buy one of these [rising prices falling yields, stock returns are not attractive anymore].

Metals: Growth's gone [copper down in Shanghai and LME trading].

Here's the killer. Despite Hurricane Dean, oil futures are down.

Oil: Growth's gone!

Now is either the best time to buy or we're all screwed

2007-08-16T10:41:00.000+08:00

Posted with permission from Stargate of Bull-Fish.com forum.

--
Please pardon my language used in the headline. There is no more colourful word to describe the financial mess at this moment. NOw seriouslY.

From a technical point of view, there are now 2 schools of thought.

That it is the best time to buy for bargain hunters (bullish)
We are at the start of a bear trend (bearish)

Yeah I know. This kind of non-commitment gives technical analysis a bad name. But hey we are not attempting to predict the market, merely take appropriate action as we go. And right now I bet the market is confused.

Chart A - The fall has been arrested by the daily 200-day ema and a trendline drawn from July 2007. This should be a much stronger support than 13k or 13,200. If the upward trendline represents the bull trend and one sees fundamentals in the market, this points offers great value proposition as long as trend is not broken. In the meantime, we have done a 10%+ correction.

Chart B - According to Dow Theorists (again divided into different schools of thought), the market has done a lower high and has breached the recent low. Therefore a sell signal has been generated (see marketwatch.com article "Is the Dow Theory now a sell signal? by Mark Hulbert - see? Even the experts question.)

On the other hand, bulls question that the retracement from high to recent low has not reached significant level ie. around 7% at the point).

How to reconcile?

I personally adhere to strict risk management rules as well as sound TA concepts. A trend is not broken until broken. Chart A gives me some consolation since fundaments as analyst wrote appear sound. On the other hand this is a view best afforded only if you have the funds to wait through a long winter.

Therefore the fight is now between the bears and strong bulls. Weak bulls stand aside.

How can technical analysis be mastered?

2007-08-15T12:41:00.000+08:00

As a person who studies technical analysis (TA) and uses its concepts to make buy and sell decisions for my various financial investments and trades, many people who just started learning technical analysis ask me how they can master the subject.

These are difficulties that they often encounter:

"Technical analysis is complicated."
"It is too difficult to understand."
"I tried to make a prediction of which price my stock will trade. I failed."

Mastering technical analysis is not difficult at all. What I would like to do here is to offer my insights and hope that the explanations will be useful to novices in their learning process.

Now before we begin, let me sum up that technical analysis is about:

Probabilities
Skill of observation

A person who can truly comprehend the statement above and make personal adjustments to approach TA can master it.

Technical Analysis deals with probabilities, never certainty.

There are many technical systems for trading stocks, futures, options, foreign currencies etc. You may encounter these systems in the form of a lesson in a CD-Rom or book, when you attend a seminar or even when you buy a software platform that generates buy-sell signals. These technical systems all involve technical analysis concepts as well as algorithms for ‘buy’, ‘sell’, ‘take profit’ and ‘stop loss’.

Many good systems exist; the best ones are those that perform consistently and have rules that are simple, unambiguous.

Good systems also have high probability outcomes but no trainer or vendor will promise surefire certainty at every trade. The reason is so simple most rational people will laugh but it may escape a person looking for the grail.

There is simply no way to predict the outcome of complex systems such as the stock market, the economy or the weather. No one can predict whether it will rain three days later or whether the US Federal Reserve will increase interest rates at the next FOMC meeting. That’s because just as the weather depends on many factors like the wind, atmospheric pressure, humidity and so on which changes minute to minute, Fed governors determine interest rates by looking at economic factors such as consumer and producer prices, unemployment, new job creation, GDP etc.

Prices are also complex systems as they are determined by various factors so it is impossible to forecast with certainty. On the other hand, technical systems use various input to determine probabilities.

Illustration of probabilities

When an insurance company looks at a 60 year-old, it is difficult to predict how many more years he will live. It is impossible to say if there is only one sample. On the other hand, if the company can study a sample of five thousand 60 year-olds, it has a pretty good statistical picture of their life expectancy.

Trading systems are the same in the sense that when a person looks at set of price data in a price chart, you can use all that history to evaluate the probability of a particular outcome. Now I do not belong to the school where one relies purely on statistical probability. This is because I believe strongly the human mind can process and recognize probabilities from complex patterns in a superior level compared to computers. Compared to the untrained mind, computers deliver consistent results but a human mind highly trained to process complex patterns can outperform the computer.

Skill of observation

Having said that technical analysis is about the use of probabilities, TA novices must have the ability to lift information out of a price chart. The more information one can pull out, the more input he has for processing. Several traits are important for a person to make a good technical analyst:

Strong knowledge of technical analysis concepts – TA users must be able to discern important information from ‘noise’ in a price chart. An experienced TA user has a bank of experience but a novice must first depend on his knowledge to create a theoretical framework.

Thoroughness – No stone should be left untouched in an investigation; look at different charting timeframes, explore every clue and put on different ‘hats’ to examine various points of view. To a crime scene investigator, every clue such as a fingerprint, a strand of hair, a chair misplaced, can be used to build a story, a picture of the action that took place. Analysts go through that same process with his data.

Diligence – Be hardworking because every new chart one analyses, every old chart reviewed, results checked against analysis, is a process of training one’s mind. A diligent person who keeps learning and analyzing is building a bank of experience. In future, this bank is drawn upon repeatedly and new ‘deposits’ are made.

Keenness of judgment

A successful TA user is diligent, thorough and knowledgeable. He is able to first build a good foundation based on knowledge and keeps practicing until he builds up an incredible wealth of knowledge and know-how. Through his thoroughness, he is able to gather sufficient information in every analysis to piece together price action and tell a story. This story tells him what market players are doing, their enthusiasm and whether the outcome is likely to be accumulation or distribution. Eventually he is able to put the probabilities in his favor and choose the right course of action. When this happens, he has developed acumen.

Technical Analysis users who wish to master the subject must recognize that the process is no different from learning any other skill such as watch making or martial arts. There is no highway to success and time is an important component. A novice first learns from books or mentors to draw on the knowledge and experience of expert users. Learning from others provides one with an initial shortcut but how long the remaining journey takes depends on personal discipline and determination.

My advice

To everyone interested to master TA I give this advice: you can take to the road by yourself but it will be more fun if you go it with like-minded people. On the way, you can share your joys and sorrows as you make or lose money in the market. Depending on how fast you walk, some people may overtake you and some you may leave behind. One thing nobody can take away from you: it is personal satisfaction for your achievements.

---

Soh Tiong Hum is a trainer with TerraSeeds Market Technician Pte Ltd.

Understanding the subprime fears - a look at Long Term Capital Management

2007-08-11T16:27:00.000+08:00

Long Term Capital Management, Black Swan Theory, Collateralized Debt Obligations

Some keywords to search up in Investopedia.com

Subprime
Alt-A

Interesting read "Liar's Poker" by Michael Lewis.

The book is about Lewis himself as a Salomon Brothers Bond Salesman in the 1980s. In the book, he mentioned how CDOs were created although I cannot ascertain whether the creation of CDOs can be credited to Salomon Brothers. Coincidentally, John Meriweather was at that time, Vice Chairman and Head of Bond Trading. He is also the founder of Long Term Capital Management. Small world huh?

Liar Poker is incredibly funny and filled with colourful characters llike John Gutfreund, Lewie Ranieri and the 'Human Piranha'. Ginnie Mae is also discussed briefly.

Established support and resistance levels of the Dow Jones Index

2007-08-11T00:46:00.000+08:00

Posted with permission from Stargate of Bull-Fish.com forum.

"Established highs and lows now.

So it means that we have now support at the 100 day ema followed by the psychological level at 13,000 (both of which confluence with the fibonacci levels).

Immediate resistance to take out would be the moving average clusters of 20 and 50-day emas."

What are the issues surrounding the credit worries?

2007-08-10T18:51:00.000+08:00

On 16 July 2007, the Straits Times Index (STI) touched intraday high of 3688.58. Today (EOD 10 August 2007), the STI touched an intraday low of 3284.74. This is a whopping loss of around 380 points or nearly 10% from the top in less than 4 weeks.

Some headlines:

Marketwatch.com
EUROPE MARKETS
Europe again falters on credit worries
Deutsche Bank, Man Group and AXA chalk up further losses
By Sarah Turner, MarketWatch
Last Update: 7:11 AM ET Aug 10, 2007
ChannelNewsAsia.com
SINGAPORE NEWS
Singapore's Q2 GDP growth at 8.6% year-on-year, 14% quarter-on-quarter
Posted: 10 August 2007 0817 hrs
Marketwatch.com
INDICATIONS
U.S. stock futures point to further declines
Overseas central banks pour nearly $100 billion more
By Steve Goldstein, MarketWatch
Last Update: 7:11 AM ET Aug 10, 2007

Just what are the credit issues about and how did they start with the 'subprime'?

What is subprime?

The subprime issue and in turn the larger issue of credit worries [disappearing liquidity and widening spreads] in the global financial market is all about one thing: FEAR of a collapse in the financial markets.

Subprime as its name suggests refers to a segment of borrowers who have a history of default. The subprime housing loan segment therefore refers to home mortgage loans taken up by home owners who do not have a good credit history.

By itself, the financial institutions who lend to the subprime segment are aware of the risks involved and therefore exposure would be contained. But here's a number of factors that led to the current situation.

Cheap credit in the recent few years have led lenders to lower their diligence as in turn, it is easier for them to borrow funds.
Because home mortgage loans are now bundled together (called CDOs or collateralized debt obligations), they can be sold to institutions including pension and hedge funds.
Investors who would never lend to the subprime segment suddenly realise that they do own some of these loans in their balance sheets because they bought the CDOs.

The last point is especially crucial. It explains why investors are so worried.

Well after the first subprime casualty (Bear Stearns funds), fund managers start to scrutinize their investments closesly.

Then some of them no doubt will scratch their heads and ask one thing: How the hell did these [subprime; CDO] get in here?

The next thing they do is naturally to try to pass it on by selling. Of course their fellow fund managers look at them suspiciously and refuse to buy unless at a steep bargain. Hence the widening spreads.

Before they know it, disasters strike because their customers suddenly want OUT. Fund managers are suddenly forced to liquidate at the lousiest possible timing [when prices have just gone to hell because there is no buyer]. Weaker funds become insolvent as cashflow dries while larger players quickly clamp down on redemption to prevent a 'run on the bank'.

Now here's the scary stuff

It is not too far fetched to compare the current crisis to the Asian Financial Crisis. A run on the bank situation is a panic driven state of the market that causes even healthy banks to collapse because they are not able to meet withdrawals.

The current credit worries cause investors to be very nervous because they do not know who owns those lousy CDOs. So in turn, nobody wants to be a lender. Even banks do not want to lend to each other and therefore everybody's cashflow dries. As a result, central banks have to step in and be the lender of last resort in order to meet short term cashflow requirements. This is a very necessary step to shore up market confidence.

Spreading to the other parts of the economy

A collapse of the financial markets is no small thing. For one thing, a lot of firms are going to go bust overnight as their deposits disappear. Growth will also disappear leading to a collapse of many asset classes. General recession will come with another malevolent round.

If a worst case situation happens and contagion spreads, take your money and run for the exits.

Picture near half time

2007-08-01T23:55:00.000+08:00

Daily candlesticks of the Dow Jones Index suggests that there is a support at the 13,200 - 13,250 region. As we saw previously, there was a confluence at this region.

Based on the picture of the index at 11.53am ET, the whipsaws certainly suggest that this region is the battleground between bulls and bears.

If the market were to close at this point, chartists who use candlesticks might envision a doji here.

Support for Dow Jones Index 31 July 2007

2007-08-01T19:36:00.000+08:00

Posted with permission from Stargate of Bull-Fish.com forum.

"In view of the sentiment driven market, we may have to make contingency plans that the 100-day ema is not able to provide support.

Next technical level to watch out for would be the 200 day-ema at around 12,800. This coincides with the previous resistance level as well as a tried-and-tested support during the February Shanghai sell-off."

Forced selling yesterday

2007-08-01T09:08:00.000+08:00

The market has come to a point of vicious forced selling by brokerages.

Forced selling on contra positions have caused stock prices to plunge. I heard the situation is so bad that brokerages are also selling positions belonging to traders who have outstanding contra losses even though the deadlines were not reached.

In addition, buyers are staying on the sidelines and not taking action due to the gloomy atmosphere and lack of positive data.

Here's something I posted previously on the mechanisms of forced selling. http://macdhighprob.blogspot.com/2007/03/seeing-forced-selling-by-tomorrow.html

Support for Dow Jones Index

2007-07-28T14:17:00.000+08:00

Posted with permission from Stargate of Bull-Fish.com forum.

"We have a confluence situation now. Will be interesting to monitor if this horizontal level is observed in the next few days.

Economy steaming along."

Bulls tried, Bears won

2007-07-26T17:19:00.000+08:00

Toto QuickPicks
5, 9, 12, 26, 34, 41

I shorted LC Development and Yongnam last Friday. Perfect timing as constructions feel so fresh today... Hurray!

Advertorial: A complete trend following system

2007-07-26T11:51:00.000+08:00

When you drive on the highway at night, it benefits you to have a clear set of lights showing where you are heading. Trading the stock market is no different.

The presence of moving averages serve the same function. (See the various dotted lines in red, green, blue, gold and white). First they show you clearly the direction of travel and secondly they act as the boundaries to make sure you stay in the lane.

This is what it takes to get you home safe and sound, hassle-free.

And when you have direction and supports clearly marked in your price chart, an indicator such as MACD merely acts as timer.

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Korean World Cup girl Shim Mina

2007-07-26T11:23:00.000+08:00

For any sports, a fan like her is definitely eye candy and will stoke the male spirit to do incredible things. Unfortunately Korea still could not give Asia the Cup.

http://en.wikipedia.org/wiki/Shim_Mina

http://www.shimmina.com/

Perhaps European and South American pom pom girls are more candylicious so that's why nations in these continents continue to do well in the World Cup.

23 July 2007 EOD

2007-07-24T00:11:00.000+08:00

5FH - Advance SCT - SGD 1.05
5FG - Swissco - SGD 1.39
J15 - Juken Technology - SGD 0.345

Screened with Amibroker. Both long and short signals may be included.

Credit Agricole becomes substantial shareholder of See Hup Seng

2007-07-22T13:29:00.000+08:00

Credit Agricole joins Legg Mason as substantial institutional shareholders of See Hup Seng, a local listed company doing anti-corrosion work for shipping.

What is more interesting is the use of nominees to accumulate shares.

This offers wonderful insight of how funds operate.

Other institutional shareholders include:
- Merill Lynch (as of June 01 2007)

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_93E646DE8020E6354825731E0011BE57/$file/Notice_of_Substantial_shareholder.pdf?openelement

19 July 2007 EOD

2007-07-20T00:00:00.000+08:00

After the house cleaning yesterday, we just might have a Great Singapore Sale in the stock market. Below is a list of stocks that seem to have strength based on previous trend and today's candlesticks.

Tiong Woon
Fischer Tech
King's Safetywear
CWT
Meiban
Penguin
Reyoung Pharma
Ascott Group
Neptune Orient Lines
Singapore Shipping
Samudera
China XLX
Ausgroup
Straits Asia
Devotion Energy
Rotary Engineering

Screened with Amibroker. Both long and short signals may be included.

Some property plays that have overhead resistance:
Suntec
Capital Land
Keppel Land
City Development

Buying stocks carry risk. Seek your financial advisor's assistance.

17 July 2007 EOD

2007-07-18T00:13:00.000+08:00

500 - Tai Sin - SGD 0.555
595 - GKE International - SGD 0.49
D08 - Devotion Energy - SGD 0.48

Screened with Amibroker. Both long and short signals may be included.

09 July 2007 EOD

2007-07-09T23:06:00.000+08:00

544 - CSE Global - SD 1.34
5IG - Gallant Venture - SGD 1.26
A52 - Annaik - SGD 0.405
BS6 - YangZiJiang Shipping - SGD 2.05
C52 - ComfortDelgro - SGD 2.20
P47 - Pacific Healthcare Holdings - SGD 0.42
S53 - SMRT - SGD 1.97
P27 - Parkway Holdings - SGD 4.06
M35 - Wheelock - SGD 3.50

Screened with Amibroker. Both long and short signals may be included.

Cup and Handle - Sunway Intl

06 July 2007 EOD

2007-07-08T17:45:00.000+08:00

5IG - Gallant Venture - SGD 1.26
5GJ - Ausgroup - SGD 1.90
514 - Eastern Holdings - SGD 0.72
A07 - The Ascott Group - SGD 1.88
A8J - China Farm - SGD 0.87
AW9U - First Real Estate - SGD 0.81
BU5U - MacArthur Cook Industrial Reit - SGD 1.35
C04 - Casa Holdings - SGD 0.17
C09 - City Development - SGD 16.80
H73 - Hupsteel - SGD 0.62
J09 - Jurong Tech - SGD 0.93
R17 - Raffles Education - SGD 2.37
S13 - SP Corporation - SGD 0.185
S19 - Singapore Shipping Corp - SGD 0.545

Screened with Amibroker. Both long and short signals may be included.

05 July 2007 EOD

2007-07-06T00:35:00.000+08:00

566 - See Hup Seng - SGD 0.955
5FH - Advance SCT - SGD 1.08
BN2 - Valuetronics - SGD 0.30
A04 - ASL Marine - SGD 1.72
S34 - Sunway International - SGD 0.095
V69 - Union Steel - SGD 0.41

04 July 2007 EOD

2007-07-05T00:23:00.000+08:00

519 - Top Global - SGD 0.16
5EZ - Adampak - SGD 0.52
M03 - Miyoshi Precision - SGD 0.26
N21 - Noble Group - SGD 1.80
BM6U - First Ship Lease - SGD 1.00
H15 - Hotel Properties - SGD 6.20

29 June 2007 EOD

2007-07-02T00:20:00.000+08:00

591 - Innovalues - SGD 0.735
5AU - AP Oil - SGD 0.37
AJI - Straits Asia - SGD 1.50
C29 - Chip Eng Seng - SGD 0.90
G86 - China Milk - SGD 1.38
L19 - Lum Chang - SGD 0.415
N12 - Nam Lee Pressed Metal - SGD 0.32
P01 - Poh Tiong Choon - SGD 0.31
P11 - Pacific Andes - SGD 0.89
S19 - Singapore Shipping Corp - SGD 0.54
U04 - United Engineers - SGD 3.90
W05 - Wing Tai - SGD 3.98

28 June 2007 EOD

2007-06-29T01:30:00.000+08:00

5DN - Ezra Holdings - SGD 5.80

U96 - Sembcorp - SGD 5.85

Australian Property Info Sessions

2007-06-28T14:56:00.000+08:00

Seems very interesting. My friends who are interested in the Aussie property boom may be attending. Free session with the following info:

Statistics, property prices, rental info and interest rates stuff

Financing know-how and banks' criteria

How to make purchase as a foreigner

Knowing how to lease out and manage FROM Singapore

How to save on taxes

Focus on Melbourne

5 - 9 July at Conrad Hotel

High volume fall of Capitaland

2007-06-28T00:04:00.000+08:00

Here's the chart and the big question: Who's the seller and what does it bode for the Singapore property sector.

Want to trade S&P Futures?

2007-06-27T13:16:00.000+08:00

Read about Gerimegaly's journey as a day trader for S&P Futures using the emini (ES). He also has another blog describing chart patterns on US stocks and this is a great place to find out all about wedges, cups and handles, head and shoulders etc.

http://futures-trading.blogspot.com/
http://tradingchartpatterns.blogspot.com/

Heavy trading volume on Capitaland

2007-06-27T12:02:00.000+08:00

The trading volume of Capitaland is giving me some unease. In my opinion, this heavy selling in a generally bullish market where locals are expecting further property rallies could mean one thing - that foreign institutional funds may be selling and departing.

Last week:

ABN Amro called for sell recommendation with target price of S$7.16.

DBS Vickers called for buy recommendation with target price of S$9.60.

So who to believe? ABN Amro analysts more clever or DBS Vickers analysts more clever?

Coincidentally, Citigroup called for Singapore to be 'underweight'. None of the heavyweights in my watchlist esccaped selling. Down at this moment of writing: SGX - S$0.40 (- 4.1%), Keppel Land - S$0.25 (- 2.8%), UIC -S$0.06 (- 1.7%).

Potential double top?

2007-06-27T10:34:00.000+08:00

Speculation has been going on for days about a double top in the Dow Jones Index (^DJI). At this moment, it seems that the 50-day ema has been doing a good job of keeping the index above water.

Market hinges on what Fed chief Ben Bernanke has to say.

Trivia: The world's first stock exchange and public company

2007-06-26T10:05:00.001+08:00

(Picture left: Swedish Indiaman Gotheburg; ships like this sailed between Europe, Asia, Africa and the Americas carrying goods, gold and slaves. The English, Dutch, Spanish and Portuguese dominated the seas and fought among themselves with these great vessels.)

1602 - The Amsterdam Stock Exchange became the first official stock exchange when it began trading shares of the Dutch East India Company.

The Dutch East India Company (Vereenigde Oostindische Compagnie or VOC in old-spelling Dutch) was founded in 1602 to protect ocean trade with India and owned a trade monopoly granted by the Dutch government between the Cape of Good Hope and the Straits of Magellan. It was prosperous throughout the 17th century but dissolved in 1799 after a period of decline.

It was the first multinational corporation in the world and the first company to issue stock. It remained an important trading concern for almost two centuries, paying an 18% annual dividend for almost 200 years, until it became bankrupt and was formally dissolved in 1800, its possessions and the debt being taken over by the government of the Batavian Republic.

The Dutch East India Company was headquartered in Batavia (now Jakarta).

References:

http://www.answers.com/topic/dutch-east-india-company
http://en.wikipedia.org/wiki/Dutch_East_India_Company

Some VOC ships:

VOC Amsterdam

VOC Batavia

VOC Duyfken - discovered Australia, captained by Willem Janszoon.

Golden cross

2007-06-26T00:59:00.000+08:00

A golden cross happens when a short term moving average crosses from below to above a long term moving average. It is generally perceived as a bullish sign and might be associated with turn around stories and /or increasing trading volumes.

There are no specific timeframes for the moving averages in question although short-long term pairs could include 50 period and 100 period or 50 period and 200 period etc.

The picture example shows a 20 day ema cutting above a 200 day ema to form a golden cross.

25 June 2007 EOD

2007-06-26T00:43:00.000+08:00

BM6U - First Ship Lease - SGD 1.01
BN4 - Keppel Corporation - SGD 12.60
B0Z - China Fishery - SGD 2.64
H15 - Hotel Properties - SGD 6.15
L26 - Labroy Marine - SGD 2.69
S16 - SMB United - SGD 0.425

21 June 2007 EOD

2007-06-21T23:34:00.000+08:00

5AI - Sunlight Group SGD 0.135
A07 - The Ascott Group - SGD 1.84
AW9U - First Reit - SGD 0.815
B0Z - China Fishery - SGD 2.68
C31 - Capitaland - SGD 8.20
H17 - Hi-P - SGD 0.91
K17 - Kingboard Copper - SGD 0.465
M04 - Mandarin Oriental - SGD 2.24
S68 - Singapore Exchange - SGD 10.30

19 June 2007 EOD

2007-06-20T01:32:00.000+08:00

A68U - Ascott Residence - SGD 2.00
B61 - Bukit Sembawang - SGD 12.50
C09 - City Development - SGD 17.90
C52 - ComfortDelgro - SGD 2.21
C86 - China Sun Biochem - SGD 0.745
S53 - SMRT Corporation - SGD 1.96

18 June 2007 EOD

2007-06-19T01:21:00.000+08:00

A34 - Amara - SGD 0.77
C31 - Capitaland - SGD 8.20
K17 - Keppel Land - SGD 9.30
M35 - Wheelock Properties - SGD 3.34

15 June 2007 EOD

2007-06-18T01:11:00.000+08:00

A61 - Asiapharm - SGD 0.735
AD8 - Sinotechfibre - SGD 1.45
B66 - PT Berlian Laju - SGD 0.34
C33 - Chuan Hup Holding - SGD 0.36
M35 - Wheelock Properties - SGD 3.22
R01 - Raffles Medical Group - SGD 1.31

Beautiful Women on Screen: Milla Jovovich

2007-06-18T00:59:00.002+08:00

An exotic beauty with high cheekbones, striking blue eyes and a saucy demeanor, Milla Jovovich started modeling as a child. By the time she was 12, she was photographed by Richard Avedon as one of Revlon's "Most Unforgettable Women in the World".

On left, scene from movie Resident Evil: Extinction

See Wikipedia on Milla Jovovich

2007-06-18T00:59:00.001+08:00

Resident Evil: Extinction coming 2007

2007-06-18T00:41:00.001+08:00

The benefit of a using technical analysis

2007-06-17T17:53:00.000+08:00

Technical Analysis cannot help you if you bought a lousy stock portfolio but if you are looking at fundamentally good stocks, having the knowledge of TA can help you to time your entry and maximise profits.

We see Meiban leading a price recovery for plastics moulding -related stocks.

MACD and stochastics both gave early entry signals. Of course you need to be equipped with the knowledge to recognise the setup. In this case, Meiban did a throwback which presented the opportunity to buy cheap (and with less risk than playing breakout).

Complete with a powerful charting software (Amibroker) and customized scripts (by Ms Binni), we have a totally profitable and fuss-free entry.

Looking for Extraordinary profits in the stock market?

2007-06-16T11:08:00.000+08:00

Kleer uses use fundamental analysis and a bottom up approach to seek out stock investments with exceptional money making potential.

http://extraordinaryprofits.blogspot.com/

14 June 2007 EOD

2007-06-15T01:58:00.000+08:00

5A1 - Sunlight - SGD 0.13
AU8U - CapitaRetail - SGD 2.94
B61 - Bukit Sembawang - SGD 12.30
C38U - CapitaMall Trust - SGD 4.20
C61U - CapitaCommercial - SGD 3.00
D08 - Devotion Energy - SGD 0.42
F33 - FerroChina - SGD 2.23
M04 - Mandarin Oriental - SGD 2.23
N03 - Neptune Orient Lines - SGD 4.48
P36 - Pan Hong - SGD 0.515
S30 - Singapore Land - SGD 10.80
U06 - United Industrial Corp - SGD 3.22

For your entertainment.

Pattern based trading strategies

2007-06-13T23:10:00.000+08:00

Trading based on chart patterns are one of the most visibly simple but also 'difficult' strategies in the stock market. Before applying pattern based strategies, the trader/investor must be mindful of its nature.

Identifying chart patterns
Chart patterns are divided loosely into 3 categories:

Continuation patterns i.e. flags, pennants etc.
Reversal patterns i.e. head and shoulder, double bottom etc.
Both continuation and reversal i.e. rectangles, triangles, wedges etc.

While patterns generally adhere to a set of characteristics that differentiate them, actual application and recognition is difficult due to the following:

Patterns grow i.e. what seems like a triangle now could unfold and change into a channel later. Therefore confirmation is required.
Text book examples of chart patterns are usually clearly defined for illustration purposes but in reality, patterns can be confusing.
Some chartists must have more flair for recognising patterns than others. It is not unlike the 'ink-blot' test. Where one sees a 'cup and handle' another one may see an 'inverted head and shoulder'.

Application of chart-pattern strategies
A person who can overcome the difficulties of identifying patterns would find him(her)self a simple way of executing trades. The rules are simple:

Buy to open (sell to open)

Identify if the trade may be a continuation trade or a reversal trade.
Identify the point of entry. Entry is usually determined by a move out of a trading boundary defined by the pattern. In other words, it is akin to trading breakout.
Determine if the breakout is true or false with inspection of other inputs such as trading volume, market depth etc.

Sell to close (buy to close)

Wait for new pattern to form.
Sell to close when price breaks out of new pattern towards entry position.
Buy to add if price breaks out of new pattern away from entry position.

Suitability
Pattern-based trading strategy is not for everyone. Persons attempting pattern based trading should observe that:

He/she has personal affinity for recognising patterns correctly.
A longer time frame is required i.e. it is not usually suitable for contra or short term traders as many patterns could take weeks or even months to emerge.
The good thing is, pattern recognition could be improved with plenty of practice.

Reference:
http://macdhighprob.blogspot.com/2007/05/profile-of-trades-consequence-of-not.html
See also Dan Zanger's ChartPattern.com http://www.chartpattern.com/understanding_chart_patterns.html

Beautiful Women on Screen: Tilda Swinton

2007-06-13T19:08:00.000+08:00

Katherine Mathilda Swinton (born November 5, 1960), better known as Tilda Swinton, is a Golden Globe Award-nominated British actress known for both arthouse and mainstream films.

See Wikipedia on Tilda Swinton

Recent movies:
Constantine
Chronicles of Narnia: The Lion, the Witch and the Wardrobe

The habits of winners

2007-06-13T17:13:00.000+08:00

Believe it or not, there are many losers in this bull market. If there is one thing common about them, it is clear that they do not have the killer instinct to succeed.

One or more of the following statements can describe persistent stock market losers:

They have moments of brilliance i.e. they do not lose all the time, in fact they have stunning successes occasionally. Clearly lacking is the understanding of the critical success factors crucial to winning; as a result, the brilliance cannot be achieved consistently.
Many lack self-confidence and discount their own ability. They hunt for gurus and the holy grail of trading. They do not work hard but continue to search for recommendations, tips and rumours. Psychologically they are self-programmed to behave like sheep and hogs and in the end get slaughtered like sheep and hogs. Even if the holy grail might land at their feet, they don't have the acumen to recognise its value.
Unlike the tiger or the eagle, losers do not retain their individuality and direction but flock together for comfort and security. They behave like deers or geese that move together in herds or flocks. That's why they get slaughtered together. The reason why deers and geese do not go extinct is probably there are too many of them and they get constantly replaced.

The killer instinct
How do you exactly define killer instint then?

This instinct is the drive to succeed by any means. Of course we might categorise winners with the instinct to succeed into 2 groups: those who play fair and those who punch below the belt.

In the stock market, we observe the 2 following profiles of winning traders:

Those who are willing to put in hours of hard work. In essence, this group trains themselves to be strong like the tiger or eagle.
Those who join networks of influential people who can give them the right information or tip to win. These are the geese or deers who are at least smart enough to hang out with the tigers or eagles rather that other geese or deers.

So how do I become a winner?
Well for the clueless, a way is to start imitating the habits of winners:

Put in hard work. In the stock market, it means being well read and having the knowledge to form one's opinion even if it might be contrarian. The next step is naturally exercising this opinion and gathering feedback to check and see whether one is on the right path. Stock market investing can be a lifelong thing so patience is a virtue. It is just like learning KungFu. Even black belt masters take years to get to that level.
Associate with the winners. If you look around you and realise that the company isn't made up of winners, then its time to move out of the crowd. It might be mercenary to choose your friends or company this way but stock market is about winning money and not chumminess at losing.
Buy stocks that are fundamentally strong and are led by strong management that deliver strong report cards. This means companies that have consistently increased profits for the past 3 years and led stock prices to new highs. Do not punt on poor qualify stocks that promise of prospects to come. Ask this question: 'Show me the money!'. If you buy promises, you may be taken for a ride. Join the winners and dump the losers and pretenders!
Buy stocks that are rising in value and go for the kill by adding more. Leverage up if necessary. Throw away the losers. If you keep losers in your portfolio, they lower your performance and tie up valuable resources.

Some laggard and turnaround plays today

2007-06-12T23:40:00.000+08:00

Fu Yu - Reversed with double bottom formation followed by break of ema200.
Meiban - 52-week high with ultra high volume. Does the movement of this pair bode a recovery of the plastics sector?

Others
Memory Devices
A-Sonic - Formed a higher low on the daily chart and broke the ema200.

12 June 2007 EOD

2007-06-12T23:32:00.000+08:00

C01- C K Tang - SGD 0.84
F03 - Food Empire - SGD 1.06
H13 - Ho Bee - SGD 2.35
S30 - Singapore Land - SGD 10.70
S63 - Singapore Tech Engineering - SGD 3.62
T24 - Tuan Sing - SGD 0.38 (52-week high)

11 June 2007 EOD

2007-06-12T01:37:00.000+08:00

A8J - China Farm Equipment - SGD 0.71
BOZ - China Fishery - SGD 2.75
E92 - C&O Pharmaceutical - GD 0.505
R01 - Raffles Medical - SGD 1.33
S58 - UMS - Holdings - SGD 0.62
S99 - Singapore Petroleum - SGD 5.55
U06 - United Industrial Corp - SGD 3.18

For your entertainment only.

Learn high probabilty trades with simple steps http://macdhighprob.blogspot.com/search/label/TA%20Notes

Chart points EOD 06 June 2007

2007-06-07T00:32:00.000+08:00

SGX stocks

- Neptune Orient Lines
- Samudera Shipping

Is it time to look/rotate back to defensive play again?

2007-06-07T00:07:00.000+08:00

At this moment, the Dow Jones Index is down 108 points. This does not bode well for the Singapore stock market tomorrow as we had generally an unmolested rally in various sectors that have their own story.

The close for the smalls caps reveals their weakness as many were not able to close at their intraday high. This is a sign of profit taking.

As usual, I go through my Amibroker charting software and scan through my watchlist quickly.

Defensive stocks to look at:

A07 - The Ascott Group - SGD 1.88
C61 - CapitaCommercial - SGD 3.02

Defensive play AS WELL AS 52-week high:

B61 - Bukit Sembawang Estates - SGD 12.60

C09 - City Development - SGD 17.70

C38U - CapitaMall Trust - SGD 4.26
T38U - Suntec Real Estate Inv - 2.09

My new disclaimer:
***For your entertainment***

Sharing a link to Mike Tong's blog ' Investment on the Singapore Stock Exchange

2007-06-06T17:04:00.000+08:00

You can visit his blog by clicking on the link below or the link found on the toolbar on the right side of the screen.

Enjoy!

http://www.companiesview.blogspot.com/