On my previous post, i mentioned that STI rally was going to be a weak one and it did indeed rally. To validate whether my statement was correct or not, i would require more evidence next week to support my statement. STI is due for a reaction and this reaction will happen tomorrow (31/12/2010) i believe. If there is no reaction, then it should be a year end window dressing effect where the upside is limited. I seriously don't believe that the big operators would continue buying without allowing a reaction to happen. This reaction is important as it would allow me to validate whether the rally would be a strong or a weak one.
Let's watch for tomorrow's action. I see some profit taking today but not a huge one. So let's await and monitor closely for tomorrow's action. The trading plan for tomorrow is no action. Watch until a significant sign/omen appears which allows for ameliorate decision.
Ronald K
