Insights to share:

Please do be mindful of the initial drop for stocks. It is usually accompanied with very heavy volume and fierce execution. Furthermore, the STI make a low of 2235.45 today. It is approaching close to the low of 2211.81 created on 23rd June 2009. SO, till this support has been broke down decisively, we advise to take quick profit and small risk per trade if anyone is entering the market place during this period of time. Otherwise, you may also choose to stay on the sidelines temporary till a clear downtrend is formed.

 

Our Focus for Today is on Property Sector

 

Property is on the bearish. Today’s drop is a clear sign that the mess we are in for about 2 years is not entirely over. We are only facing a bear rally that just ended in June.

We are focusing on the 2 main leaders in the Property Sector, namely: City Development and Capitaland.


Bearish Stocks (Singapore):

 

Symbol

Name

Entry

SL

TSL

TP

Remarks

1

CTDM

City Development Ltd

Tested low of 7.80 created on 22nd May 09. From the bar chart, volume transacted today is extremely high.

2

CATL

Capitaland Ltd

Capitaland break 3.50 with heavy volume.

Refer to the charts here:















STI has broken down the support 2261.29 on 6th July on the 15min chart. See details on attached screen. The drop came between 11:15 to 11:45. The white bar that was created after 12:00 signifies a reduction in the selling pressure that the first 3 bars had imposed initially.








There is a high chance for the market will be drifting from this point. Our stand is bearish on the short term. Avoid long positions if necessary.

 

Surprisingly, the bank stocks are not so much shaken by today’s sell off. They are holding relatively well.

 

Initially we were looking at DBS for a quick long position during the Market’s open this morning. The first 15min bar shows interest in stock with high volume. However, the stock only manages to touch the entry price of 11.40 and came down fast. (Refer to DBS 15min Chart)