Saturday, January 22, 2011
STI - Jan 21
This week, STI went down considerably, especially in the last two days. Next immediate support is seen at the 100dma of 3160. Regional markets also fell considerably except the DJIA. DJIA reached new highs and this has made me optimistic that this downturn in prices is likely a temporary correction rather than a correction from a "market peak".
As for my portfolio, it has similarly went down in line with STI, albeit with small volume. As none of my stocks has reached my stop-loss limit, I am still cautiously optimistic (albeit a little worried) about my holdings especially those companies in my "growth portfolio".
However, amidst the sea of red, there remains buying opportunities. But one must always be very careful... always wait for the selling pressure to subside before entering! Among the stock that are on my radar include Golden Agri, Ezra Holdings. I am also eyeing the ipo for Sri Trang Agro-Industry Company and Malaysian Smelting Corp Berhad.
Next week shall be an interesting week. I would like to think that this week, the stock market over-reacted to news of China good GDP figures by worrying about an impending interest rate hike... and a bullish divergence is seen (good economic news yet stock prices go down). Then again, only time will tell and lets just fasten our seatbelts and see how the market unfolds next week! :)