Market continued its uncertainties to today. The STI gapped up at the open of the morning session due to overnight effects from Dow Jones. The Dow recovered all of a 130-point loss at 12:30 a.m. (Singapore Time), closed up 1 point at 8,764. That was 12 points below their 2008 closing level of 8,776.39. 

 

But it was clear that the momentum failed to sustain for the day. Shortly after the opening of Hang Seng at 10am, the STI quickly covered the gap and trader lower at 2327.10.

 

Though the STI did moved below the support at 2327.10, it faded towards the last hour of trading with a close at 2344.19. Nonetheless, we believe that the STI is unlikely to hold at this point for long.

 

We reiterate strong resistance at 2363.28.

 

Short term trader should consider “short” selling based on current market weakness. It is advisable toenter small on the conditions that if both sector and company chartings are strong.

 

We are short term biased downwards on STI.  Our trades are all executed at lower risk than our usual trades due to the uncertainty.

 

 

Our Focus for today is on Consumer, Palm Oil and Oil Rig Sectors

 

The leaders of the above mentioned sectors show signs of weakness indicating that the mid-caps might fall.

 

Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume.

(Again, we have only highlighted the bearish stocks)

Bearish Stocks:

 

Symbol

Name

1

FRNM

Fraser & Neave Ltd

2

WLIL

Wilmar International Ltd

3

KPLM

Keppel Corp Limited

4

UOB

United Overseas Bank Ltd

5

HKLD

Hong Kong Land Ltd

 

Additional Pointers:

  • FRNM – daily chart has already turned downwards. Wait for a pause before resuming back to normal risk exposure per trade.