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
