Market Diary:
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Tuesday, September 28, 2010

Dow Jones Updated Chart

DJIA has reached the upper boarder of the broadening formation. Speaking about broadening triangle, volume should increase as the formation taking shape. However, volume has been declining as in this case so I am not 100% sure if the pattern is valid !


Wednesday, September 22, 2010

Uptrend Out Of Steam !

The STI closed with an inverted hammer today. Parabolic SAR is accelerating and tracking the uptrend closely. Current closing has almost reached the cyclic swing high. STI may due to retrace in the upcoming sessions.


Thursday, September 16, 2010

IndoAgri - Trendline Violated

IndoAgri has always been one of my favorite counters because it heeds technical analysis very well. A quick glance at the chart below reveals how well this counter respect each of the trend lines and support / resistance.

The closing today broke an uptrend line within a large rectangular channel formed since November 2009. The width of the channel span between $1.90 to $2.57 giving almost 70 cents of variance for trading purpose.

I would like to see $2.22 ( last significant low ) be taken as a confirmation of the trendline violation. Once this is confirmed, we can look forward to $1.90 ~ $1.95 as a possible entry. If $1.90 holds, we may expect the price to bounce back to the upper channel at $2.50.


Tuesday, September 14, 2010

Straits Times Index - Breakout From Resistance

The Straits Times Index breakout from the resistance at 3,043 yesterday. Technically, this is a sign of strength. The pull back we see today is a natural profit taking after a strong breakout ( technically, this is called the "return move" ). Unless the return move went way below the resistance turned support at 3,043 ( if that happen, it signifies the breakout is a false one ), we should be looking at 3,280 as the near/mid term target.

Lately, there has been very few post because I have been preoccupied with activities in searching for a temporary home after I sold my inter-terrace to cash out a capital gain of close to $600K. Immediately after the option was signed, the government announced the property cooling measures. So the timing can't be any better! At the same time, I was able to find a temporary home ( an inter-terrace as well ) at a rental I considered a steal. Now, all I need is a little more blessing to be able to re-enter the property market over the next 12 ~ 18 months to buy back cheap!

Stock to watch : CHINA XLX ( $ 0.56 )
Reason : Breakout from 200 SMA

A word of caution : Historically, October is usually the worst performing month for the stock market. Many major stock market crashes took place in the month of October.