Charts in brief: 10 May 10.

The STI rebounded nicely today. Personally, I am making use of the rebound to reduce exposure. If the rebound continues tomorrow, I would lighten my portfolio further.

STI advances 2.1% to 2,880.48 at closing
Monday, 10 May 2010

© 2010 - The Edge Singapore

Courage Marine: The BDI is in excess of 3,600 today! Good news for Courage Marine as it closed 1c higher at 20c but on very low volume. If Courage Marine is able to close at 21c or higher in the coming sessions, it would negate the bearishness seen in the last couple of weeks. We have a buy signal on the MACD but its reliability is suspect due to the very low trading volume. Wait and see.

Golden Agriculture: CPO at RM2,538 today means it is still in a downtrend which started in early March. Golden Agriculture staged a nice rebound with price piercing resistance provided by the 100dMA at 55.5c to touch a high of 56c before closing at 55c. Volume is also respectable.  We have a morning star set up, a 3 stick reversal pattern. The buy signal on the MACD is more credible in this instance. My overnight sell queue at 55.5c was done.  Let's see if 55.5c could be overcome and the resistance at 58c tested next.  58c, that's where I would queue to sell again.

SPH: MFI bounced off 50% support, forming a higher low. $3.90 resistance successfully taken out as price closed at $3.95. Volume is respectable and the price might go higher tomorrow to test the next resistance level at $4.03 gap resistance which coincides with the 20dMA. SPH remains the largest investment in a blue chip for me and I made use of the rebound today to offload some, locking in some gains. I might offload more tomorrow if its price goes higher.

CapitaMalls Asia: 4r1g buy signal on the MACD. MFI is turning up from the oversold region and the OBV is turning up too. We also have a valid morning star pattern although a weak one with volume very low on this up day.  There are various resistance levels next if the price continues to move up.  I would reduce exposure at these levels: $2.09 gap resistance, $2.12 support turned resistance and $2.15 declining 20dMA resistance.

Healthway Medical: MFI emerged from the oversold region. OBV continues to decline, suggesting that distribution is underway even though the counter has gone CD. I continue to queue at 15.5c to sell at resistance.

Saizen REIT: Quarterly results on 12 May 10, two days from now. Price closed at 16.5c today with technicals turning very positive. First off and a major development: the negative divergence between price and volume has been negated!  MACD is turning up towards the signal line as we see a buy signal. MFI's higher high is a given while the OBV suggests aggressive accumulation. The only negative is the descending 20dMA which seems poised to form a dead cross with the 50dMA.

Before the price could go higher, the descending 100wMA which is at 17c has to be overcome. This is a very long term MA and is likely to be a strong resistance. Let's see.

Good luck to all fellow Saizen REIT unitholders!

US Futures are looking very green now.  Looks good. :)

Related post:
Charts in brief: 7 May 10.

Tea with AK71: A good cat.

I spent an hour or so visiting local blogs on investment and trading just now. I read the latest post in Musicwhiz's blog.  It is titled: "Why traders are important for value investing." It had 22 comments by the time I read it.  I added a diplomatic 23rd comment.

Then, I came back to my blog and found a comment (from an anonymous reader) which likened buying stocks to betting on horses, saying that we want to bet on the fastest horse. This is found in my post: "Replies from AK71: More on REITs".

People will always have opinions about anything and everything under the sun. This is one reason why interaction between people is interesting. It would be terribly boring if everyone were to have the same opinions about everything. However, there will be times when strong feelings are attached to these opinions. To verify this, we just have to see how Musicwhiz's post invited some rather strongly worded comments.

What do I think? Well, I took a leaf from the late Deng Xiaoping's book. He said that it does not matter if the cat is black or white. If it catches the rat, it is a good cat. Deng Xiaoping was a truly visionary leader. China would not be where it is today if not for him.

Chamomile tea, anybody? It's calming, I was told. Have a great week ahead!