Last night Dow fell another 64pts to 14,015 while the S&P500 lost 8pts to 1,554 after Technology stocks fell. Tech stocks fell after JP Morgan issued a sell recommendation on Baidu.com, China's search engine. Google fell for the 1st time in 5 trading days while Apple lost the most in one month. Technically, Dow looks like it is about to turn downwards. Its MACD is also about to issue a ST sell signal. We may have to wait tonight to see if the sell signal takes place or not.
STI saw an inside day on the charts yesterday - which means that investors are undecided on the direction of the market. Nevertheless, with overbought RSI and Stocastics, I think a short term pullback is on the cards. Probably in the next week.
KLCI is at is 55-day high, which is bullish. However, the selling remains on the TMT. Indicators are still positive but also slightly overbought. The index may try to test the 1,392 level today but i foresee a lot of sellers would be waiting at those levels. Penny stocks saw a comeback yesterday afternoon with Mui Ind and BJ Corp leading the way. I continue to like penny stocks for now but I would continue to trade cautiously due to the overbought market.
No comments:
Post a Comment