| | Close | Change | Low | High |
| STI | 1,843 | -43 | 1,830 | 1,875 |
| | Shares | Value |
| Volume Traded | 1.72 billion | $1.36 billion |
Our market was relatively normal for the first half of the day – some profit-takings as we had matched up higher the previous day. After lunch, regional markets began to retreat considerably. Their weakness took a toll on us, dragging us to as low as 1,830 before the 20-day MA lent some support. At pre-close matching, our market got matched up again, this time because of bargain hunting and maybe some short coverings.
As mentioned this morning, we will be anticipating more eagerly for these few results release tonight: Morgan Stanley, Wells Fargo, Apple and eBay. Then we will be witnessing very soon in next month if the cliché line, "sell in May and go away", applies this time round. For those who have been buying around this region, it is time for us to take a breather and see if STI will break below its 20-day MA and retreat to 1,780 before buying more again.
High beta vs. defensive stocks:
Same strategy again. The market is starting to feel a little wobbly again. Therefore, I think it is time to pre-empt the rest by going into the defensive counters first. In the event the mass market begins to take damage from a strong correction, they will flee to the defensive counters, which is when we will sell to them for some nice profits. And because the defensive counters have retreated a bit these few days, they are at relatively attractive prices already.
Note: Kindly read my first post, About Myself, on my disclaimer. Thank you.
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