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Friday, May 7, 2010

STI Technical Update (6th May 2010)

Although I was about to sleep, I keep having this nagging feeling that I need to share my latest thoughts on a possible wave 3 extension of my expected A wave.

In this scenario, it would be very bad... Wave 3 is the strongest wave, and wave 3 of 3 will definitely smash most supports like bean curd.

The below shows my chart and my expected wave counts:



The Bollinger Band has widen tremendously, signifying great volatility. Other indicators are also negative bias, although some are on the oversold region.

The only hope lies in the hammer seen in today's close,  but I doubt this hammer would be confirmed today, given that Dow Jones is now down over 400 points (3.71%).

Sell in May and go away? Perhaps. As a primary dividend investor, I will look to buy some dividend stocks when the Bollinger Band starts closing up again, perhaps for a B wave up.

Europe's problems are definitely far from over.

2 comments:

  1. Hi Momo

    great article. What are the high dividend stocks you're looking at ? Can share ?

    ssgtrader

    ReplyDelete
  2. Hi ssgtrader,

    it would be the common ones:
    REITs and Trusts
    SPH
    Starhub
    Perhaps M1
    Aztech (again? maybe.... maybe not...)
    Neratel! (30cts would be 10% yield!)
    GRP if 20cts
    Uob kayhian


    But I must have the funds first! Which means I need to seriously increase my active income sources too!
    You can help me if you want :)
    (i) Donate
    (ii) Advertise here
    (iii) Visit the advertisements (hehe)

    ReplyDelete

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