singapore stock market update 2july2008

Singapore share market update 2july2008

Broad Market sentiment based on technical analysis

many hot stocks (eg ferrochina, sino environment, china hongxing, mercator, china milk, celestial)  have broken their recent support levels over the past two days - this is what i would consider a “group breakdown” signal.

as opposed to “group breakout” signal which is positive, “group breakdown” is a negative signal, and in my analysis i usually used one technical indicator called parabolic SAR.  if you look at the stock chart, say using metastock or other charting software, you can see that ferrochina parabolic SAR turned negative on 27th june, china hongxing turned negative on 1july, celestial on 1july, china milk on 30th june, china XLX on 27th june and sino env as early as on 9 june…….so there bearish parabolic SAR signals is across the board.

so it should not came as a total surprise that yesterday and today (2july) that we continue to see renewed selling pressure in the singapore share market.

Watch out for potential rebound as we move closer to 15 July

the question next is when do we expect to see a possible technical rebound (bear in mind that we are likely still stuck in a downtrend so any rebound is considered a technical rebound for many stocks)……i personally think based on last quarter market behavior, when the sell down continued until 15 april ie 45 days after march end financial reporting period, this time round, i would expect market to stabilized around 15 july again 45 days after the june end financial reporting period…… just in time for a rebound ahead of the release of  2Q08 results.

In the mean time, either you continue to look for potential short ideas or play online games to pass time.

cheers

rooney