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22-08-2007@08:21 HRS
Yesterday's selling in SGX was due to DOW futures turning weak. Traders were getting flashback of the horrors of the past 2 weeks. It is like the past coming to haunt you. The DOW turned out to be mixed & S&P + Nasdaq went up. There is a tech play in the early stages as the Nasdaq shrug off slight weakness in the DOW - watch this space as corporate spending goes up, Ciscos, Intels ..may semi-cons will enjoy rotational interest...IF we recover, the best gains might be in electronic sector which has not moved for 2 years ...the sector was in a slump as property, china plays and oil & gas stole the lime light.
Today will be a mixed day for Asian markets. However, Hong Kong will move up and peak at a gain of 200pt-300pts (very hard to ascertain, track the momentum). I will be a buyer of HSI calls if the Hong Kong market open relatively weak ...flat or with a gain of less than 100pts, it should build upwards from there until profit-takers come in, then you get out. If the HSI opens strong > 150pts, leave it don't touch. Please check all the conditionals on this play and understand it before you step in. Stop your losses if the HSI hit negative territory.
As for STI, it will be a follower....the way it moves before the Hong Kong opens will be the way it moves when Hong Kong closes. It should be flat...
Watch for accumulation in penny stocks, I did a check there is actually some but it ran out of steam as the STI moved down steadily yesterday. So it may not come so soon but keep watching.
Again, watch the Yen closely, if the USD goes below 114, another round of painful selloff, if it go above 115, there will be a rally. If it goes above 116, the 'crisis' is over. If it stays where it is ...status quo.....
Let the markets open, have a fun choppy day.........
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