Friday, January 8, 2010

STI Updates -- The shadow of Rising Wedge

The rising wedge is still broadening, hoping to be a rising channel instead by reaching the light blue dotted line:

The key question remains if STI will break the 61.8% retracement level. I will have to observe how it behaves these few days, especially with CCI so high and %R starting to dip. But one thing is for sure; if my wave counts are correct, the end of this rally is near, within a month or two. A big correction will come and wipe out most of the recent gains, and that's where people will start to believe that double dip will indeed come again, or that STI will go lower than March lows.

With this count, it appears that it is almost time to offload some of my holdings. Breadtalk reached a new high of 75 cents, higher than it's 2007 peak, whereas Hor Kew has recovered to 1 cent below my purchase price. I had originally wanted to sell Breadtalk at 0.73 and Hor Kew at 0.115, resulting in a net gain of $1k+, but my indecisiveness has made me lose the opportunity my badly positioned Hor Kew.

The bear market of 2009 has also aroused my interest to a few more stocks worth investing for the longer term, both for their dividends and growth. I'm hoping that my wave counts are pointing me to the correct direction; a very big correction is imminent. It will be in this big correction where I will load the some valuable companies for longer term dividends and growth.

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