Monday, May 30, 2011

Dyna-Mac - The Easiest Stock to Trade

Dyna-Mac caught my attention because of it's frequency on the Top Active list. After prudently studying it's manipulation activity, it appears to be one of the easiest stock to trade with, with almost 70-80% predictability on it's stock direction. A proficient chart reader would be able to discern between what are the big players are trying to achieve, buying vs selling. This stock should not go disdain as it is constantly churning volume for probable future trends.

Studying the transactions on this stock, I became immediately conscious that, on too many occasions to be a coincidence, the stock constantly revealed big players buying at the bottom and then distribute at the top so they could purchase more at the bottom at a later stage. The stock now looks like it is trending lower without any big buyers' activity emerging yet. Till then, I will watch closely everyday until it hit a major support with huge buying basking in.

Ronald K

Friday, May 27, 2011

STI - The Mid Day Report

STI rebounded after a massacre day on the 23rd May 2011. Today it tried to test the gap down area created between the 20th and 23th May 2011 with good healthy steady volume. It tells me that the bulls are in control for moment. Whatever selling that happened on 23rd May 2011 is now partially recovered by today's buying activity. Observed the blue circled area, I am cognizant of the possible selling in that region. When it reaches that region, I will then look to see how much selling emerge and what are the big sellers planning to do in order to corroborate my view of a possible correction. For those who have cut losses, shorted the market and expect it to tank lower after 23rd May are now deeply chagrined.

I have a strong sixth sense that the market is going to break through the circle blue resistance area based on the buying campaign that the big boys employed since mid February period.

Ronald K

Thursday, May 26, 2011

Cosco - Possibly Insider Accounts Filled

While other indexes like Hang Seng and Nikkei edged possibly higher with more activity, the STI ended on a lethargic local session to close slightly higher. I unwittingly noticed that Cosco was in the front runner grasping for fresh air. Based on the past 4 days of trading session, Cosco is pretty vulnerable to possibility of a reversal of trend over the near term. This could be insiders accumulating the stock for investment and/or trading accounts. Look to long Cosco when it reacts, do not chase after it. Handsome profits could be awarded.

Ronald K

Yanlord - Big Boys Activity Detected

Watch Yanlord! Big boys activity detected during the opening bell.

Ronald K

Wednesday, May 25, 2011

Yangzijiang - Buy For A Bounce

Today seemed to be the first day for a minor rally for yangzijiang in the short term. Apparently, besides yzj, the overall market got a lift and rebounded which gave regional bourses the incentive to recover from the recent dizzying sell-off that had sent prices down spiral. I won't say that the rebound was strong, however this might signal a start of a short term rally for the moment. It could be more distribution to come or it might signal the end of the recent downfall, the answer is I don't know. I will have to watch and observe how much follow through in the coming days.

To trade Yzj for the short term, look to long when it reacts. Look at the volume when it reacts, it should be low which signals lack of selling activity. There are a lot of stale bulls out there. They will be lured into selling their shares each time the market attempts to make a comeback, so be very wary when yzj edges higher and higher as traders will use the surge in trading activity as an alibi to unload their positions at higher prices.

Ronald K

Monday, May 23, 2011

Keppel Corporation - The Second Wave of Selling

Kepcorp after the ex-date of CA plunged $1.44 on the following day. This plunge marked the first day of a heavy selling and subsequent selling to follow. The gap observed on the chart marked big sellers intention. Should kepcorp be bullish, the gap should be filled with strong buying activity. After the plunged, the next three days were followed by profit taking and more distribution to come. Big sellers cannot allow continuous selling or they would lose money. Imagine if they were shorting at $13 and allow the market to tank down further without allowing it to go up first, they would not have sufficient funds to buy it at wholesale prices should they not take profits by covering some shorts. Therefore, based on this theory, there must be short covering and profit taking to distribute more shares to bring the stock down further.

The first distribution started on April 25th and the first selling wave started on April 26th. Today marks the start of a secondary selling wave. I expect lower prices to come for Kepcorp as I believe Kepcorp has completed it's course of a major rally since the accumulation phase last year. We should now look to sell on strength for Kepcorp.

Ronald K

Thursday, May 19, 2011

STI - The Rally Towards 4000?

After posting and studying the 10 year chart of STI, it leads me to believe that STI might be on it's way towards the 4000 level. Of course, it would take some time and effort to reach there. For the short term, the action on May 18th told me that STI was supported around the 3124 level where big buyers were heavily buying. The high volume on May 13th 2011 proved to be a classic hidden agenda where prices refused to tank lower which alerted me that big buyers' activity was all stalled on that day. If that is so, they are definitely planning to take the market higher instead of pushing it down. Today we broke out of an apex which could be the start of a true breakout with higher prices to come.

Ronald K

Monday, May 16, 2011

STI - The 10 year chart

I was studying the operation of STI for the past 10-15 years. I was fascinated by how cycles of booms and busts were created and how much fortunes come and go. Observed when the bear market developed from  1/1/1996 to 3/1/2000? This resembles the current market condition where the current major trend is still on it's up way. If the future mirrors the past or if the past is a reflection of the future, we shall see STI above the 2007 high before everything starts to collapse again. Of course, this is just an assumption and we shall continue to watch for big boys' activities in place.

Ronald K

Saturday, May 14, 2011

Capland - Shortist Beware!!

I was particular interested to see if STI is going to have a rebound after last Thursday's massive sell down. To my wildest dream, i never expect the rebound to happen so fast. This rebound proved one thing, big players are buying heavily instead of selling down further. The hidden buying last Thursday was not promulgate to the public but only to the esoteric few. The rational behind the massive selling last Thursday was to create panic public selling so that huge amount of shares could be absorbed by the big players for higher prices to come. For the market to continue higher, i would need to judge how much selling and how much follow through emerge in the following week.

On another note, i was particularly interested in the property sector. Capitaland exuded big buyers activity. The buying was not strong nor weak, it's neutral. This is the first sign of buying activity to support this stock. For those who are still holding shorts in Capitaland, it's time to take notice and start covering partial/full shorts to lock in profits. The buying activity in Capitaland tells me that there is still room on the downside before a major uptrend commence. To judge if this is just a short covering or a true buying for a bull raid, i would need to watch the supply and demand factor closely in the following week. For next week's trading plan, i would look to enter on reaction than buying on breakouts.

Ronald K

Thursday, May 12, 2011

STI - Sellers or Buyers In ??

Could today be the first day of a heavy selling by the big sellers or were they actually planning a selldown so that they could purchase more to elevate the market higher? The probability seems to favor the second option. For the past few days, big buyers had put out purchase with 4 days of continuous up bars. Psychologically, if they had already started buying a few days back, why would they want to take profit or start short selling today when the risk and reward ratio do not justify their risk entry? I mean simply put it this way, if they are buying at $1, why would they want to take their profits at $1.1 when they could take it at $1.3? Based on this assumption, i am presuming the market would continue it's uptrend until it hit the major resistance at 3230. To know whether if this will materialized, I would need to judge how much follow through on tomorrow and the actions' of the next few days.

Ronald K

Wednesday, May 11, 2011

STI - The Uptrend Continues?

The past 4 days' STI action tells me an interesting story. Just when I thought the market was going to have a weak rally, it surprised me with 4 days of continuous up bars. It tells me a scary story, the big sellers are increasing the speed of advance so to distribute more. It's been really tricky and chicanery this past week for me as a whole. I don't see any strong evidence for a rally nor insiders' accounts being filled. The only clue i got was on 6/5/2011, the market actually refused to tank lower but instead reverse and close high. Even so, this doesn't tell me anything. Then on 9/5/2011, the market finally reveal its willingness of a possible continued uptrend.

Today's action tells me a reaction might happen tomorrow. To judge whether if the big sellers are actually selling the market or buying on this uptrend, we shall judge by the amount of supply that present when it happens. I had drawn the midterm uptrend channel as a guide for my trading plan in the coming weeks. The first resistance is 3178 and a bigger resistance is at 3230.

Ronald K

Tuesday, May 10, 2011

Yanlord - A Typical Buying Campaign

If I were to long a stock for mid to long term, Yanlord definitely fits into that criteria. Looking at the whole operation since Feb 2010 till date, the long term trend has been down. However as of today, it tells me Yanlord is due for another rally and could break the long term bearish downtrend. Could this be the start of a super bull for this China powerhouse? My gut feeling is telling me yes to buy this stock and hold. Big buyers as of last week had been supporting this stock strongly, they are unwilling to let this stock fall further and are accumulating for a elongated rally.

Ronald K

Monday, May 9, 2011

NOL - Buy On Reaction

On April 19th 2011, i blogged about NOL and it's long waited rally. Although during that period of time, NOL did rally, the speed of increase and the rallying power was not what i expected. The rally only went on a few cents before draining down further. In that situation, if one were to hold this stock, he/she should be alerted and either take a small loss or take a small profit and listen what has the market got to tell us before making another buy/sell call. Welcome to the stock market and chicanery operations by the big players. You've got to have sharp, alert and mindful sensory feelers in order to be successful and profitable in the long run.

Today's action tells me that the big players finally revealed their true colors of the past few days last week by pushing prices up. It tells me they certainly need public participation in order to get prices higher so as to unload and take profits. If that is the case, the public like us will then need to follow the big boy's instruction by purchasing this stock so that they can continue their operation to release at a much higher price and we shall profit from them. To trade this stock now, we shall buy on reaction and not chase the rally. I had attached an illustration of how the big boys carry their secret buying agenda for your reference.

Ronald K

Friday, May 6, 2011

Mapletree - The Public Participation

Today something caught my attention when the market opened lower in the morning. I was particular interested in Mapletree because not only it did not tank lower after the XD date, instead it went into a minor absorption mode and flew all the way up. A lot of people say, sell on XD and buy on CD, I say watch very closely on what's developing in the background first before even attempting to short.

See the attached chart. The big players had already started purchasing around at 1 dollar to prevent this stock from falling further. Mapletree had been undergoing a long accumulation mode since the day it went IPO. Big blocks of volume were located around the 1.05-1.07 price range. In that trading range, big boys were absorbing the overhanging supply so as to prepare for a bull move. Today we witnessed all the preparation work that was done in the past few months where Mapletree displayed a high volume public participation. The rally today is not over, we will see Mapletree take issue and advance to greater heights.

Ronald K

Wednesday, May 4, 2011

STI - Sell on Rally

STI had began it's much awaited selling and once again many public were caught off guard. I was just talking to one of my friend and he told me he lost a lot in it and he had to hold until it goes up again. This tells me the importance of charts and learning how to read it like the big players. Looking at the whole operation, i already saw big players unloading and distributing last week, however the definitive moment came yesterday when finally they had finish the transferring process and started short selling.

Looking at STI the past 2 days, it confirmed the bearishness that was developed last week. Could this be a start of a larger downtrend or a correction for higher prices to come? The answer is I don't know until I see evidence of big players activity either supporting the market or allowing the market to fall further. My trading plan for tomorrow would be to watch for a weak rally within these few days (if any), then look to short more or continue to hold my shorts until i see big buying emerging which tells me a start of an uptrend is imminent.

**Remember, for the market to tank lower, there must be rallies for more distribution. If the market continues to free fall, this tells me the big players are buying heavily and planning for a bull campaign to come.**

Ronald K

Tuesday, May 3, 2011

Capitaland - The Distribution Phase is Over

After observing Capitaland for the past several sessions, today exudes a breakdown of the trading range. This trading range affirms my conclusion of a distribution phase where the stocks are transferred from the hands of the strong holders to the weak holders. It reverberates lower prices to come. Observe the beautiful trend channel that was drawn, the overall long term trend is still on the downside. The short term support is at 3.24, however i believe this correction will break through the previous low at 3.08 because of the 19 days worth of distribution from 4/4 to 29/4 2011. To trade Capitaland for the moment, one should look to sell into strength and NOT blindly sell into weakness!

Ronald K