SHORT TERM MARKET TAKE
Yesterday small-mid cap stocks open gap up with a flurry of buy call reports BUT was sold down on heavy volume and most of them close on day low. I see this as a negative sign since today many stocks have not recovered from yesterday sell down. As such, I have decided to close long positions today.
The selling pattern today seems similar to yesterday, up in morning and very soon selling starts again…..this looks like some form of “planned” selling by certain parties……
Bearing in mind that the huge volume yesterday will be due in 2-3 days time. So market will be under some selling pressure in the near term.
Technically speaking, many hot stocks have moved into overbought region so this selldown is not completely unexpected. I would wait for the oversold indicators to cool off a bit before deciding my next move.
2Q06 results season should start again soon so I would take this sell down as opportunity to build some small position and trade for result play stocks. I will not buy too early ahead until i know the proposed resultss date.....then buy 3-5 days before that.
But this is only for short term trading as I expect market to be weak again after results season is over.
stocks to watch on pullback (results play and/or good technical signs) :
1. chartered (results date 21jul)
2. DMX
3. China aviation
4. longcheer
5. JEL (results date 8aug)
6. Aztech
7. UTAC (results date 26jul)
About Me
- rooney
- enjoy stock and forex trading
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