Morning Highlights

Our Focus For Today Is On Oil & Gas and Commodity Sector

Singapore market inched up in opening trade on Monday with the key STI rising 10.75 points at 2933.51, approaching short term resistance at 2945.06.

• Indofood Agri broke high of 2.46 (new trade opportunity, refer to Short Term Quick Pick 13)
• Ezra broke high of 2.49
• Hong Leong Asia broke high of 3.12 (new trade opportunity, refer to Short Term Quick Pick 14)

This morning, China released its trade balance figures that showed exports surged in December and imports rose to a record in a stronger-than-forecast trade rebound that may lessen the case for governments to sustain stimulus programs this year.

Singapore News Updates:

1. Singapore’s Retail Sales for November on Friday 15th January 2010.
2. Keppel Corp’senvironmental engineering arm ofKeppel Integrated Engineering has secured two contracts worth US$53m to supply waste-to-energy solutions in China.

News Updates:

1. U.S. nonfarm payrolls drop 85,000 in December as jobless rate holds at 10%; interest rate near zero.

2. U.S stocks also gained as inventories at U.S wholesalers unexpectedly jumped in November by the most in five years, a sign that companies are picking up the pace of orders as sales climbed 3.3 percent, the biggest gain since January 2008 (Bloomberg).

3. U.S’ November’s Trade Balance figures and along with surveyed optimism figures through the IBD/TIPP Economic Optimism will be out tomorrow on Tuesday 12th January 2010; the ABC Consumer Confidence on Wednesday13th January 2010.

4. The Fed will be publishing their own commentary on current economic condition through the Fed Beige Book on Thursday14th January 2010. Advance Retail Sales figures will also be made known on the same day, while December’s Consumer Price Index will be released on Friday 15th January 2010.

5. The European Central Bank will be announcing any change in interest rates on Thursday 14th January 2010, and the Euro-zone CPI on Friday 15th January 2010.

6. Japan’s November Machine Orders and December’s Domestic Corporate Goods Price Index out on Thursday 14th January 2010.

7. Chinese banks made about 600 billion yuan (US$88 billion) in new loans in the first week of 2010, the Economic Information Daily reported on Monday.

8. Troubled Japan Airlines Corp is set to cut about 15,600 jobs, a third of its work force, and reject billion-dollar cash offers from Delta and American Airlines, as it files for bankruptcy and embarks on a government-led turnaround, reports said on Monday

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.  <The Quick Picks referred herein contain overnight positions from Last Week>

Here’s Our Mid Term Holding Opportunities:

Stock Prices last updated at 17:05 (Singapore Time)

Afternoon Highlights

The STI is holding well. Singapore inflation will be seen at 2.5% – 3.5% this year as said by Ministry of Trade and Industry. (Business Times)

• Osim broke high of 0.575

In Summary,

Index close up 10.77 to 2933.53, with 3.0941 billion traded. Though index managed to break the resistance at 2945.06, it is unable to hold and subsequently retreat back to below the resistance. Nonetheless, it managed to hold up above 2930, indicates this is a fairly strong support.

Our Focus for Today is on Mid Caps

Bullish Stocks (Singapore)

Stock Prices last updated at 16:58 (Singapore Time)

Afternoon Highlights.

Ho Bee is going ex-dividends on this coming Thursday at 2 cents.

STI tested support at 2576.09. It did a “V” shaped recovery. There is a short term resistance at 2647.64

In Summary

Today’s traded volume has achieved high of 3.64 billion. Market early recovery of losses signifies that it is resilient on the downside. Currently we are more concerned with the resistance at 2700.

 Quote of the Day

"We believe that according the name 'investors' to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'" - Warren Buffett

Morning Highlights

Market is going to be choppy from now. We have yet to identify any good trade opportunities. Traders are advised to enter with small risk.

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. <The Quick Picks referred herein contain overnight positions from Last Week>

Bullish Stocks (Singapore)

Stock Prices last updated at 14:28 (Singapore Time)

With Reference to the STI Chart below:

The Reversal Island Pattern indicates a short term bearish sign on the stock market. Once again, we advise all traders to stay out of the market and/or to close all existing long positions.

Afternoon Highlights

   to lookout for support at 2542.34!

Asian stock markets were lower on Monday, weighed by losses on Wall Street and weak U.S. consumer sentiment data released on last Friday.

Though the market is weak, there are some trades worth taking a closer look, such as ASL Marine (see chart below)

This counter has been trading sideway for 7 days before breaking out today with high volume traded. We advise to wait for the stock to consolidate first & then enter on the breakout.