Morning brief – 30th Jul 2009

The markets tanked yesterday after SSE plunged 5% on closing. From my sources I was told it had something to do with Jim Rogers saying the China market is going to crash. In some strange fashion, it really did. Wow. The HSI plunged in tandem and that spooked the Singapore market creating a very dramatic sell-off. It recovered to close above support at 2600 however. It looks somewhat like a technical correction. The question once again is, where do we go from here?

I have been observing the buy signals to see if they follow through. Some did, some didn’t. Volume is very good on the weekly chart and for the buy signals to be violated we need to sorta close below 2533 which is a huge drop.  The market open at 2541 on Monday and a close tomorrow above that will maintain a white candle. 100MA is at 2626 and for a bull continuation, I will be looking for high volume breakout of 2626. If it succeeds I will be looking at 2725 region which is a very strong resistance due to support turn resistance during Jan-March 2008 period.

I went in on OSIM for a tikam play today. Venture had a nice breakout but no follow through today. Staying away for now.