6th september evening scan list

Parabolic SAR daily trending indicator just turned positive
criteria : volume > 500000

HLG ENTERPRISE LTD
ADDVALUE TECHNOLOGIES LTD
TELEDATA (SINGAPORE) LTD
SUNMART HOLDINGS LIMITED
MANHATTAN RESOURCES LIMITED
LIFEBRANDZ LTD
ARIANE CORP LTD
CHINA FARM EQUIPMENT LIMITED
AMPLEFIELD LIMITED
NEW WAVE TECHNOLOGIES LTD
PROV SUPPLIERS CORP LTD
SCORPIO EAST HOLDINGS LTD
SIHUAN PHARMA HLDGS GROUP LTD
STRATECH SYSTEMS LIMITED
ASIA TIGER GROUP LIMITED

Who Let The Dogs Out

Singapore small-mid cap stocks were running wild today, like popeye the sailor man suddenly ate his spinach……got power man!! I would consider it a broad base mini-rally of some sort with many Singapore stocks from multiple sectors all breaking short term resistant levels.

Of interest is the fact that more and more stocks are showing positive parabolic SAR signals and MACD signals.  Both of these are trending indicators.  In the past, whenever we see a group signals similar to what I see today, expect to see a short term burst across the board in the near term.  Another positive signal would be the Bollinger bands for many Singapore stocks which have been contracting over the past one week….like a pressure cooker waiting to explode!!  Usually when Bollinger band contract, it is a signal that the stock price is likely to make a sharp move….either up or down.  Today, we saw what happened man, like rocket for some penny stocks.

Market sentiment for the Singapore market is looking good at the moment:

I did a quick scan to see how many stocks are showing positive signal for MACD; my metastock scan shows that a whopping 68% or 1195 securities out of a total of 1768 securities are showing positive MACD signals.  As for parabolic SAR technical indicator, 58% or 1030 out of 1768 securities are showing positive signals. The market breath has certainly turned very bullish for the near term.

Happy trading my friends!

Rooney Yong

3rd Sept 2007

Those holding onto put warrants must be feeling better today as we expect Asian markets to move higher due to US positive move last weekend.  STI did not gap up but instead is giving an uninspiring performance with thin volume across the board….japan nikkei also in negative zone, seems like the 61.8% fibonacci retracement for STI, around 3416 points remain a strong resistance……STI has breached it on intraday basis but not on closing basis.
Despite the positive indicators we are seeing eg stochastics, MACD etc, the "price" is the final ingredient for the signal. until the 3416 level can be convincingly overcome, STI could remain range bound or even correct downwards again….after all, the final trending indicator MMA is still negative.

Let's see how HK market perform when it opens at 10am, if HK also give "sian" performance, then STI is likely to follow Japan and HK markets. This is the problem when market is quite volatile….short term traders just have to be flexible and prepared to long and short quickly cos market may gap up or down. i am still not good at trading STI, i only use STI pattern to determine broad market behaviour and use that to trade individual stocks.

Happy trading my friends, put warrant traders should be feeling better today…..hmmm maybe i should join them too hehe