Singapore stock market comments - 6th Sept 07

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