Market View 2 September 2011

Our local stock market was in profit-taking mood
yesterday and most stocks regurgitated some gains
from the last 2 trading sessions. It is perfectly normal
and as what I was saying yesterday in blog, " this is
a rebound that we are looking at". Just let Mr Market
rest for a few days and he will be back with a vengeance.

I will now publish some emails that I have received
from a blog reader and my reply to him.
(The sender's name is being withhold)
On Tuesday morning, I received the following email:
"GOod morning bro,
May I seek your advise on the recent Sheng Song which
IPO in the SGX. It is on a good run till now been raising
since then. However, many of the Gurus in the sharesinvestment
website deem that it's overpricing and might be due to
unhealthy speculation by big players. Is it worth holding it?"

I replied:
"Thank you for your email.
Regarding Sheng Siong, I will give you my TA view rather
than a fundamental view. Sheng Siong had surged about
61% from ipo price 33cts to close high at 53cts on Monday.
If you look at its chart, it is the typical "steep step to death".
I expect it to meet strong resistance very soon around the
57cts level and a retracement is expected. And the correction
will likely land it in the 44-45cts region. At the current moment
, it is very risky to continue to chase up the stock as once the
selling starts, it will be a steep and fast selldown on high volume.
This is my personal view based on TA. Hope that what I said
can help you in any way."

And indeed, Sheng Siong retraced yesterday after hitting
a high of 57.5cts and closed the day at 50cts.
This is the reply from the reader after I enquired whether
he has sold his stock away in this selling.
"Ya bro..

Thankz for the update.. Still tot suddenly chong to .47 lol.
Was outside in the morning din manage to sell off at .57!!
So hearpain!! Sold it off at .515. Wow u reali god man! Ppl
are selling off from their gain ytd.. So sad :("

You maybe wondering that since Sheng Siong is in
an uncharted water, how did I know it will that it will
retrace around the 57 region. Well...Mr Market told me. 8-)

The same can be said of STX OSV, I stated that it will
meet strong resistance around 1.46, and indeed it reversed
after hitting the high of 1.46 yesterday. It is going XD today
with a 5cts dividend declared. It should still be supported
around the 1.39 region.


Enter any position with a Cut-loss level & Trailing Stop,
and Please practice strict Money(Risk)-management.
If you don't like what you see in the market,
simply don't trade.

If you have Skype, and would like to chat with me about
stocks and all others, you can ring me at my
email address: stocklobang@yahoo.com
I have currently a couple of members skyping with me
everyday,and they are having good trading results.
See their comments here:
http://stocklobang.blogspot.com/feeds/comments/default

As usual,
Stay Alert but be Aggressive too.
Audentes Fortuna Juvat !!

市场生存座右铭: 风林火山 

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