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
