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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.