Sentiment improving

KLSE started the day with a cautious mood with CI opened at 1361.45, up 1.62 point from previous close. Thereafter, CI moved north steadily to close the day at 1378.27 with 504 gainers versus 319 losers, and volume was healthy at 1.5 billion shares. This indicates market sentiment is gradually improving from the "Black Monday" fear. As mentioned previously, this kind of fear driven fall is usually make used by the "Big-boys" to drive the market down to collect shares at lower price. For those who understand this, Monday was a good time to pick quality stocks at discount. The rest are history.

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Looking forward, where is our market heading? CI is just 14 points away from the all time high of 1392 registered on 24th July 2007, so near yet so far. However, I am confident that CI will breach this target very soon, maybe in conjunction with the launch of the ECER. Whatever it is, it is all in the control of the "hidden-hand", what we retailers concerned most is which stock is going to move higher.

Let's take a look at some of the stocks that we have been trend tracking. The star performer is Magna, with a hefty rise of 1.60 from 2.90 since 9 Oct. For those who caught this counter, cheers! Maybulk, KNM, BJLand, BJCorp, Sunway, Icapital, Sweejoo, Unico are still in a good uptrend.

IOICorp, BHIC, Landmrk, Suria, Sarawak, Pohkong, Kretam, Jaks, Dataprp are into short term consolidation with uptrend intact.

Suncity, KPS, Ranhill, Complet, KUB, AMDB, MUIIND, Idaman, HWGB, are into sideway consolidation mode.

Today, the active stocks are made up of many Red-label (PN17) counters such as Putera, Tanco, Ekran, FCW, Megan, Talam, Suninfra, just to name a few. This indicates that the syndicates are again active, trying to get the small fish into their net. Some of them have good short term trend and one can trade them for the very short term (T+1), however, my advice is that if your "Kung-fu" is no good, or still half-pass-six, you better avoid them as your opponent is the Big-alligator that will swallow you like a piece of "Dim-sum". If you don't know how alligator catch their prey, I suggest you go and watch them on Animal Planet.

Some of the new additions to our trending stock family are Alam, AZRB, and VADS. Stocks that experience good trend change from sideway to uptrend are TChong, UBG and Fututec. However, TChong and UBG already show sign of weakness, Fututec's volume is on the low side, the trend change is not very convincing, could be make-up.








Sunway has just cross convincingly over the resistance of 1.99, and BJCorp is also trying similar attempt, worth watching.

Disclaimer: The above is not a recommendation to buy or sell, all suggestions mentioned are purely for academic study purposes for our trend trader club members only, and the author may have personal interest and position in some of the examples mentioned. Any losses incurred if you were to trade base on the study examples above is sole your own responsibility. Do consult your dealer before taking any action.