Watch out for "Help" (7236)

Chartwise, it looks like a flag breakout. Could reach about RM1.06 based on 1x the wave 1. If it rallies 1.618x, then we may be looking at RM1.14-1.15.

Singapore rebounded but Malaysia didn't

STI rebounded but the Malaysian counterpart failed. Would the rebound for Malaysia take place today? It is the the end of June, where there would likely be 'window dressing' as they call it. Funds would keep prices on the up to maintain a good performance for their books. But the market has risen about 20+% since the turn of the year, do they still need to boost prices now? I think it is highly unlikely. I expect further selling by funds in both the KLCI as well as the STI in the immediate term.

Could rebound today

Today could be a rebound day on both markets as the bears take a breather. Yesterday's positive close would also act as a support today. If you are holdings big blues, I think it is better to take profits on rallies and keep cash. I still some 'bullishness' in lower liners both in Malaysia and Singapore. How strong would this rebound be, well, it remains to be seen. I doubt there is much upside from here.

Technically weak markets

Both the KLCI and STI looks weak on the charts. KLCI saw a failed breakout of its sideways trend (1,330-1,374), now that it has fallen back into it. 1,391 could be the all time high and is now the key resistance. STI has also fallen below its wedge and if my wave counts are correct, the wedge was minor Wave v in a major Wave 3. The fall could be the start of corrective Wave iv in the Wave 3.

Remember the unwinding of the Yen carry trade back in Feb? It looks like there are some unwinding now. The Ringgit and Spore Dollar also has weaken, which could suggest that funds are now leaving our markets. If the unwinding becomes more hectic, ooo, you don't really wanna know where both markets would be heading next and how fast would it be to get there. These are volatile times and it is not wise to jump in head first. Let just say, be careful in the markets right now.

A big correction to come?

Wall St closed marginally lower but that does not tell the whole story. There was a big rally earlier in the morning trading session before concerns about the health of some hedge funds sent the bulls running for cover. It was up about 120pts before losing about 180pts but last minute buying took the Dow back to the unchanged level. Technically, this seem to suggest 'indecision'.

What is expected of our markets today? The KLCI could regain some of its yesterday's losses but I don't think it will last. Lower liners still look very tradeable (for now). The STI looks to have broken downwards from its bearish wedge pattern. Expect some selling on the blues but lower liners should still be in play.

Success (7207) and Pilecon (4073)

Success is not only looking good on the charts, it is also a pretty good fundamental stock. It is now trading at a P/E of 8.4x according to Bloomberg. Chartwise, it could reach RM1.10 next, should it break its all time high of RM0.92.

As for Pilecon, it looks interesting technically. Today is the 1st day where volume picked up, so i believe that there should be more days of upside to come. Could hit as high as RM0.48 if the volume continues to pile in.

Asti Holdings

Asti Holdings is breaking out right now! About 30% upside from its breakout level - S$0.40. Technically, it is a very good level to get in, based on its risk/reward ratio.

Tamcorp (0048) - take over target?

There is a rumour in the market that the stock could be taken over at RM1.50. It was actively traded last Friday. Could be worth a look. I think Nylex owns a majority stake in Tamcorp.

Hanging tough

Another steep fall over in Wall Street due to the concern of a looming credit crisis last Friday. Will this affect the market on Asia? Yes, but it may be minimal (at this point in time). Yes, the immediate term, both the KLCI and STI still looks ok, but I would not be overly bulllish at this point in time.

There are still stocks which are bullish right now technically. In Malaysia, there are bullish signals on AsiaPac (4057), Berjaya Corp(3395) and Perisai (0047). Keep an eye on Adventa (7191) too. In Singapore, HTL International and Equation Corp are catching the eye although Equation moved quite a 'bit' on Friday. There are just too many small cap stocks breaking out of their consolidation to list them all here in the blog. Keep a sharp eye and drop me a 'comment' on which stocks are on the move yeah.. thanks.

p/s: Surewin, thanks for Perisai (0047) - see comments.

Up, up and away

Wall Street rebounded last night. Nevertheless, the markets on this side of the pacific do not seem to be quite bothered about the ups and downs over there. Both the STI and KLCI managed to close positively yesterday. Both markets saw an increase in market participants as the trading volume increased for the last three days. It looks like the retailers are coming back in car loads. This is a positive sign for the market. When they come in truck loads, then it is probably time to say bye bye! :)

The 2nd Board in Malaysia is starting to rally again. Eden would probably be one of them running today. Market rumour - that they are going to get tonnes of projects. I would stick to stocks like HPI Resources or maybe PMB Technology.

Singapore - look out for IPCO International and Popular Holdings. AsiaMedic is also starting to move up. Waiting for a breakout in Asti Holdings and PSC Corp.

Small cap makes better returns

Right now, the smaller caps seem to have a better risk/reward ratio. Us as retailers have the advantage of being mobile when compared to the institutional players. Stick to the lower liners today in both the Malaysian and Singaporean market. Blues may come under some selling pressure due to the drop on Wall Street last night.

Global Voice

Global Voice looks technically sound. A new run could take place soon after it tested its breakout level. This one is worth a good look. Could rise to S$0.30 next.

New highs!

Both the KLCI and STI should continue to make new highs today. However, the lower liners and penny stocks should remain the spotlight of the day. In Malaysia, look out for the call warrants!! They are going to come back with a vengeance. Look out for TM-CA, Maybank-CA and CB, Bursa CC and CE. In Spore, yesterday's Koh Brothers moved out of its triangle and it should continue on its rise again. Yesterday, Japan Land also moved out of its trading range. I'll try to keep a lookout for more stocks. Stay tune!

Similar situation

It seems like today is just another day, probably very similar to yesterday. Lower liners is expected to continue to hog the limelight. In Malaysia, 2nd Board's stocks are looking very good. After being in the doldrum for such as long time, it is about time these stocks start to move. HPI Resources (7919) is one of those that not only looks good technically but also has good earnings. In Singapore, we like tech stocks. They too has been in the doldrums for a long while now. It is time to run and play catch up. Let's play ball!!!

Koh Brothers

The stock is now still stuck in its 5-month consolidation triangle but today's volume has picked up. Is this the first sign that the stock is about to move out of its consolidation? I believe so. Indicators looks positive with MACD's golden cross. Get ready for the breakout!!!

More action in the lower liners

As I mentioned last Friday, I think the action today would likely be on the lower liners instead of the blues. In Malaysia, oil and gas stocks such as Sapcres (8575) and Scomi (7158) would continue to shine. On the other hand, in Singapore, we like BH Marine and ASL Marine. Friday's stocks such as Swing Media, MemoryD and Manufacturing Integration Technology.

Swing Media and MemoryD

There were a few breakouts which took place this morning and most of them are in the top 20 most active stocks. Swing Media, AsianMic, Memtech (broke out a few days earlier), MemoryD and Auston. All of the stocks mentioned above do look very tradeable. I personally prefer Swing Media and MemoryD. I would buy these 2 stocks if I had the money to do so now. :)

Stick to the lower liners

With Wall Street edging higher for the second day on the trot, it would likely mean KLCI and STI would also end higher today. However, it would be better to stick with the lower liners for better risk/reward ratio. I like HPI Resources (7919), Analabs (7083), MMM (7040), SapCres (8575) and RCE Capital (9296) in Malaysia. In Singapore, MediaRing and Meiban Group.

MMM (7040)

MMM (7040) also broke out of its symmetrical triangle this morning. Breakout volume is also very good. Buying momentum should continue to rise and could lift the stock towards the RM0.42 level. Very tradeable.

Sapcres (8575)

Bullish breakout on Sapcres (8575) today. Looks like Sapcres' ascent is expected to continue from here. In one of the business papers today, a norwegian listed company called Seadrill bought a 9.1% stake in Sapcres. Seadrill is linked to oil tanker and shipping billionaire John Fredriksen.

"Too much volatility"

'There is too much volatility in the market these days'. Some people may even add to that - I can't take it anymore. However, pro traders love these situations!! So are you a trader or are you a just a 'wannabe'? Well, for the next couple of months, expect volatilily - tonnes of it! Nevertheless, there is still some stocks that are worth looking at.

In Malaysia - the Second Board index and Mesdaq counters should continue to shine. MCMTech moved 11.8% yesterday. Will continue to look out for similar counters. Stay posted.

In Singapore - the Sesdaq looks to be rallying further. I am also looking for laggards in construction sectors - like Lian Beng. Technology stocks are also on my radar. Some Tech counters that is under view is Jadason, Beyonics, and even CSM. Advance SCT looks very tradeable.

Rising 10-year treasury yields in US

Wall Street was spooked by the rising 10-year treasury yields. The yields rose to its highest since May 2002. Dow fell 130pts while S&P500 declined 16pts. Today would likely be another down day for the KLCI and STI. There are still interest in lower liners but for how long?

KLCI is expected to retest the 1346-1350 level today. STI could ease to 3500-3520 level.

Punting season

The KLCI is expected to consolidate today. But the 'punting season' has just opened. Stocks listed on the KLSE 2nd Board was actively traded yesterday. Don't think it will be any different today. Lower liners would continue to hog the limelight. There is a bullish breakout on MESDAQ yesterday. Look out for MESDAQ stocks as well. Stocks that I like at the moment are MCMTech, MEMS, and maybe IPOWER.

Adventa (7191)

Another stock which broke out of its LT trend line resistance a few weeks back. It has not move much since. Has got lots of potential on the upside while the downside is 'capped'. Use the breakout level as a stop loss. Put your stop at RM1.22.

Comments pls!

Federal International 2000

The stock broke out of its MT downtrend resistance at S$0.65 on Friday. Any consolidation is a good opportunity to get in. Longer term the stock could head higher towards its S$0.88, followed by S$1.00.

Technical rebound today?

Strong close on Wall Street on Friday may help both the KLCI and STI to rebound today but chances are it is an opportunity to sell rather than to buy. Blue chips would likely be under pressure still while lower liners may continue to shine. Nevertheless, keep in mind that waves lift all ships, whether big or small and now the waves are heading south. Hence, this run for small caps could be of a short-term nature.

Engtex Group (5056) and HPI Resources (7919)

Engtex Group (5056) is looking good on the charts. It is about to break its RM1.50-1.55 resistance. A breakout could lift the stock towards RM2.50 in the medium term.

HPI Resources (7919) is starting to build a base around the RM0.80 level. Today's pick up in volume is an early indication that the stock is about to run. Indicators are looking positive which are supportive.

Comments please!

An imminent correction?

Dow Jones Index fell another 198pts or1.5% last night on concerns of rising bond yields. The benchmark 10-year note yields broke out of its consolidation triangle and a reverse is likely to happen. The 10-year yields may continue to rise to as high as 6.5% between nowand 2011 according to Pacific Investment Management Co.'s Bill Gross, manager of the world's largest bond fund.

So, will this impact the Malaysian and Singaporean markets? I believe it will. We already seeing money flowing out of both the Malaysian Ringgit (MYR) and the Singapore Dollar (SGD) in the past few weeks. The MYR has weaken from 3.38 in late May to 3.4525 now while the SGD rebounded from April's low of 1.509 to the current 1.537. This shows that funds are moving out of local assets, be it bonds or stocks or something else.

Is a correction going to take place soon? I think it will be very soon. Maybe even today...

The start of a downfall?

Could the sharp decline over on Wall St be the trigger for a reversal in both the Malaysia/Spore markets today? S&P 500 fell 14pts while Nasdaq lost 24pts last night. European markets also saw steep decline. I believe that this could be a start of a new medium term downtrend.

JAKS Resources (4723)

Looks like this stock is set for a run. It retraced slightly more than 62% from its high but it is rallying now. Now it is already up 5sen or 7.8%. But I think it could retest the old high again. Stops at RM0.59.

Comments pls!

PJ Development (1945)

Flag breakout on this stock. Volume also increased on breakout. Worth a look. Looking at RM0.98 target. Downside - stop at RM0.735.

Comments please!

PacCent (Spore)

PacCent is also on the move. Just broke out of its trend line resistance at S$0.405. Looks like a good entry just presented itself. Could hit S$0.47 on the upside. Stop at below S$0.39.

Design Studio Furniture Manufacturer (Spore)

This is one of the stock that I found that looks good technically.

A short-term flag breakout on decent volume. Could rise to test its recent high of S$0.375, even breaching it to head to S$0.40. Keep stops at below S$0.30.

Would like to hear some comments. Cheers!

My first BLOG!

Hi there market players! This is my first blog as the title suggests. Just a little history bout me. I have been tracking (and admiring) the markets for about 6 years now. I have traded stocks, index futures and forex markets in my short working life. I use technical analysis for trading but I still do keep track of Fundamental news as well. What are your preferences?

The regional markets (ASEAN markets) are currently on a bull run. How long will this bull run last? What do you think the Malaysian/Singaporean market now? China is under some selling pressure, and will it affect both markets? I believe that Malaysia's KLCI and the Singapore's STI are also under pressure too. Technically, I see negative divergences on both markets. It is only a matter of time before both markets correct. What say you?