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Monday, July 6, 2009

Shampoo Time ?

STI is at the verge of breaking the Head & Shoulder neckline. Once this takes place, get ready for a nice shampoo and look to 2,000 as minimum target ( maximum target can be back to 1,450 but unlikely ). What is interesting is that I did not alter the trendline per last post, prices just filled in nicely within the trendline. Head & Shoulder has a success rate of 93% ( pretty high indeed ) but that mean we still have 7% chance of failed or false H&S pattern. Let's see if the odds are on our side and will salvage the plunge.



The triangle view mentioned on July 1 is invalidated. By now, prices have exceeded 3/4 of the triangle and is too close to the Apex for a valid breakout.



I was tempted to join in the herd of property buying wave. My entire weekend plus today were filled with viewing appointments. I am looking for a condo as 2nd property for investment purpose. Unfortunately, it seems like both the resale owners and developers are pricing the properties ahead of the economic recovery. Resales owners are asking for $50K above valuation. Meanwhile, developers have quietly repriced the unsold units versus those sold 1 ~ 2 months ago ( Transaction records in URA website unveals this. eg: $840K units are being marketed at $918K now ). A property agent friend told me I am late in the entry by about 4 months. Prices have rallied since Feb/Mar. Er.... it seems that I am always late. A year ago ( when the property market was still bullish ), I attempted to cash out the profit from my landed home and was told too late as prices have begun to fall !
Sunday Times warns the recent rally is not sustainable. I am hoping this can be true ....

PS: I am looking for the updated property index chart like this one. If anyone has it, I would appreciate if you can share that with me, thanks!

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posted by Market Wizards @ July 06, 2009 Comments: 1