SINGAPORE STOCK MARKET NEWS

26july06
Many hot stocks closed near day low yesterday on high volume. In fact some of them closed in the red. This is a clear distribution signal indicating that smart money may be unloading again. This is similar to what I noticed and mentioned on 12july, followed by a sharp correction a few days later. This time, the pattern is quite similar, with volume rising for many hot stocks and they closed at day low with day range expanding, not a good sign.

The heavy volume will be due again in a few day’s time so I expect selling pressure to persist in the coming days.

Also, quite a number of technical chartists have been calling for a shortlived rebound and they expect more downside in the days ahead.

The point to note is that, be cautious, take smaller position and also take quick profits.