Morning Highlights:

The Market is seen trading in a tight range. The STI needs to break 2247.4 and continue to hold at that point before we can deem 2234.45 is a good short term support.


However, based on the current chart pattern, the STI had to cover the gap to 2266.92 to indicate a reduction in the selling strength; otherwise, there isn’t any good sign for any upward opportunity.


Our Focus for today is on Individual Stocks


Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume.

Bearish Stocks:







Suntec REIT

It broke (26/05/09)’s low of 0.89. Based on trading activity of 1K at 0.875, downward strength is building up. Looking to short at 0.86.

However, this stock tend to throwback fast, hence, traders please be nimble if you enter any position.



City Development Limited

It broke yesterday’s low of 8.35 at 10:15.

For the price level at 8.32, only 6x transacted with 35k traded.

For the price level at 8.31, only 2x transacted with 4K traded.

For the price level at 8.30, only 2x transacted with 6K traded.

Based on the volume transacted, we identify to have more seller than buyer but price is holding around this range, hence, more confirmations needed to confirm the downward strength.



Bullish Stocks:







Hong Kong Land Holdings

It broke (15/06/09)’s high of 3.41.

Based on the charts, HKLD manage to hold well at 3.41 and traded higher to 3.48. However, based on the volume transacted, we see higher vol. on selling than buying. Thus, even though the stock had went up, but with little buying vol. indicate less buying interest.

We advise not to trade this stock!*

 *Key notes on HKLD:

Based on the overall market behaviour, we do not advise to open long positions. However, if you do see any good opportunity for a “buy”, please enter with small risk and exit fast to prevent the market from turning against you abruptly.

According to the 10min timeframe, you could enter a buy position at 3.47. Please watch out for the high of 3.74 created on 1st June ’09.



Afternoon Highlights:

The STI managed to cover the gap at 12:15 today. It needs to break through 2270.41, and if it does, traders should expect to cover their short positions.


Refer to the snapshot, you should see that the market had a sudden and abrupt turn after 1415, falling 9points in just 15mins.



In Summary,


The Market managed to breakthrough 2270.41 at 4.15pm. Index close positively upwards, which indicates a good sign since it manage to cover the gap. However, on a general view, the volume traded for today is 100mil less than that was traded yesterday. Hence, we still deem that the market has no clear direction at the moment.


In the short run, we won’t be expecting any huge run down, but rather, a gradual sell off.


Quote for the day

Sectors that are more likely to be impacted by the FOMC decision include “companies that count debt-laden American consumers as their primary customers,” such as autos, flat-screen TV makers, tire manufacturers and electronics, said Sagami.



Attention on Wednesday turns to the Fed, which is due to release a policy statement at 2:15 p.m. Eastern.