STI Update 2 - Is STI continuing its rally ?

As mentioned in my earlier post, STI is due for the rally and the rally should be a weak one. How do i know? See the circled area on the STI chart, that tells me its a weak rally. Of course, i could be wrong. I was monitoring STI today and it appeared that there was no strong demand for the market to trend higher. For the whole day, the market had been mostly retail public buying and short coverings. I was also twitting to let those who follow me to take a position or watch the market with me. Two tweets were posted, one in the morning and another one around 2 hours before the market close.

I was watching the intraday chart and i saw a lot of retail punters we buying up, and not much big operators activity going on. There was just lack of interest in the market, everyone is in the shopping/holiday mood for Christmas and activity in the market was just listless. For now, we watch what will unfold tomorrow. Will it continue to trend higher or a sell down persists? You decide yours as i had already decided on mine.

As i am typing this post, the Euro is green. I just want to make a point. The best way to learn this market is to treat every market individual. It doesn't mean that if Dow/Euro/Hang Seng is green, STI should be green too. That's just a myth. Some may disagree with me but that is fine. Understanding the inter-relationship between supply and demand and it will bring your understanding and knowledge to the next level. Don't limit yourself to the myth, be like a parachute, open up and absorb the truth in trading. Remember, no limitation is the best limitation and you wont go wrong with that.

Ronald K