STI at crossroad now…

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