Dear friends,

I have been busy with my work lately so not much time to update the blog recently.  But more importantly, i have not seen any compelling signals to go long (my main problem is that i am not good at going short so usually only look for signals to go long.)
The last time i call for a short term technical rebound was almost spot on, pls see the previous blog update based on positive divergence signals on 13th feb….the rebound was fast and furious and only lasted 2-3 days.  Since the medium and longer term  technical indicators are still negative, its not surprising that the sell down resume after the technical rebound is over.

Since the last market peak we saw around 19th feb, the latest sell down has been going on for another month.  And when i did my metastock scan last nite, i like what i saw, that more than 50 stocks are showing me positive divergence signals.  As i said in the mojo chat box last nite, this is an “early” signal that market may stage another short term technical rebound……of course the confirmation will have to come from price action itself!  Today several stocks price actions confirmed that a short term technical rebound is on the cards…..barring overnite US market collapsing.  In fact, today is an interesting day, with Hang Seng dropping almost 1000 points intraday today, some singapore listed stocks (eg synear) actually DID NOT go lower than yesterday low.  And when Hang Seng rebounded, some of the S chips rebounded strongly.

For short term traders, i think the market is telling us that there is good chance of another technical rebound ahead……

I like synear price action today, it has positive divergence signals combined with MACD histogram breakout signal, plus the fact that it did not go lower than yesterday lower of 0.42 which will be the cut loss point for anyone entering long today or tomorrow.  The upside potential is not bad too with next resistance for synear at 0.52…..happy trading

rooney

p/s: hehe Man Utd is above Arsenal again