SINGAPORE STOCK MARKET NEWS
Play with the dogs.....woof! woof!

12Sept06

It’s been awhile since I last updated the blog.
I have been trading, albeit in small position since I expected broad market to be weak (pls see last blog).

It’s interesting to see lately that stocks like labroy, china sun, asiapharm, fung choi charts have turned weaker while stocks like MMI, Seksun, Hong Fok (what the heck is this, never heard before) turned bullish.

Needless to say we can see the spillover effects.......short term negative for certain china plays, oil and marine, shipping stocks, while positive for small-mid cap HDD/plastic plays and some “mini” property stocks (I like to call them gems cos many people overlook them).

Already, stocks like fuyu, meiban, fischer, sunningdale, first engineering, huanhsin are rebounding and their charts look promising. But one should still be careful since some of them are unlikely to show any strong earning recovery in the near term. So I would consider some of them as “trading” ideas, not for long term investment......not until they show earnings growth!

Now that we are into september/october (the traditional weak season), I will be more selective in my trading choices. Since 3Q pre-results rally is still sometime away, better relax a bit and trade small position on the performing sector ie small-mid cap HDD/plastic/tech plays and mini property stocks.

The pulling back of oil prices may be slight negative for certain stocks, but definitely positive for the plastic guys......they have been dogs for a long while......but everydog has his day.....woof woof!