Thursday, October 11, 2012
STI- 10/10/12 Watch your long positions
On 5 Oct 12, STI broke through the channel (above 3088) - bullish
However, on 8 Oct 12/the next trading day, it broke back down into channel.
on 9 Oct 12, it still did not recover back above 3088 and confirms the false break out of channel.
Failure of a bullish signal is bearish...do watch your long positions.
Especially since it is earnings season. Remember Noble 1.6 to 1.2 last year. Wilmar? Olam? etc.
Personally bearish on blue chips (especially those that have rallied a lot), although some penny counters still have some room to run. Disclaimer applies.