Monday, 6 June 2011

06/06/2011 12:43 DJ MARKET TALK: STI Off 0.5%; Sell Into Strength;Outlook Bearish-UOB

DJ MARKET TALK: STI Off 0.5%; Sell Into Strength;Outlook Bearish-UOB 06/06/2011 12:43
0442 GMT [Dow Jones] The STI is down 0.5% at 3128.65 midday, falling along with regional markets after Friday's weak U.S employment numbers, which capped a week of disappointing data from the world's largest economy. Volume is light, at 433 million shares worth S$331 million, with trade subdued amid holidays in Hong Kong and China; decliners outnumber gainers three to one. UOB KayHian says, "investors should look to sell into strength as the outlook remains bearish for the moment." It notes the STI is "trading dangerously close" to its 12-day and 26-day moving averages; "a slip below the 26-day moving average (at 3126) could see the index declining to the next minor support at 3100." Artivision (5NK.SG) is off 2.3% at S$0.215 (vs its S$0.245 intraday high) with 118 million shares traded, today's most active. Neptune Orient Lines (N03.SG) leads declines on the STI, as the container shipper is seen as being the most vulnerable to a slowdown, which will hurt trade; it's down 2.2% at S$1.75 in active trade. ( 
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Wednesday, 1 June 2011

ADP jobs and ISM report from the US miss expectations .. prompting market talk of QE3 .. STi to suffer a correction before specter of more money printing raises market hopes again ..Friday's non-farm payroll data and Greece rescue news awaits ..

STI to suffer a small correction next 1-2 days    - next support  3152 then 3138 then possibly 3105 .
Friday's discounted non-farm payroll data  and Greece rescue news awaits ..
if no relief news in sight from Europe or US Fed or Fri jobs data , then 3040-60 is a strong possibility next 2 weeks.

Kepcorp suffers down reaction at 11.60, expect small correction ,  to hit strong support 11.30 of our old trading band  ( 10.30 - 10.60)  then   next support 11.20 then 11.06 
final support , if hit , at $10.90 - $11 is a screaming buy.

Cosco to re-test 1.88 then 1.84 then possibly our old target 1.80  since 18 April peak
( see and  1.5 month most popular post at )

Straits Asia Resources breaks out on new mining license and higher coal prices .. but general market to pause and correct when STi hit 3180 after recent run called on 25 may , holding out for jobs non-farm payroll data from US coming out Friday ( with ADP report on wed nite ) and Germany's review of Greece Rescue package over weekend ... so buyers beware ..

for our  last bull call on Commodity & offshore Marine stocks on 25 may , see

Pure Commodity Coal Mining Stock StraitsAsia Resources breaks out of long holding wedge pattern on new coal mining license and higher coal prices on increased china demand    - next resistance $3.20 then maybe $3.27  followed by $3.36 if market conditions are good though highly unlikely in next few days given STi is near strong resistance at 3180

Kepcorp will hit our upper range of recent bull call at 11.60 tomorrow but suffer a downward reaction there together with STi at 3180 ( see .