SINGAPORE STOCK MARKET NEWS
entering into 3rd week upward move which started 17-18july

31july
I mentioned on 25july that based on historical data from the past two years, market moved upwards in the last 2 weeks of july and peaked in the first week on aug.

I also did some homework further back to 2000. The pattern over the past 5 years was that market rally usually last not more than 16 days (about 2-3 weeks) whether it moved end july or early august. We are ENTERING into the 3rd week of the upward move which started around 17-18 july. The probability of a correction is getting higher if u believe in past data.

With the historical data in hand, what we should watch out for in the next few days are two things :

1. when hot stocks hitting overbought levels (many have NOT reached overbought yet BUT are approaching that level).

2. distribution signs : many hot stocks closed near day low on high volume.

When we see these two signs, and with the knowledge of the historical data, the case for taking profit, as some techincal analysts have been suggesting, will be pretty strong.