advise to hold off all buying currently. (first warning and signals to watch for were given 9 trading sessions ago already. http://elfinchilde.blogspot.com/2009/09/october-warning.html)

STI supports, restated:

2650, 2600 psych supports.

Critical level this round: 2522. It is the base of the M formation; if broken on high sell vol => 2409 is the tech target.

Note: market can choose to turn on any pivot point, including a psych point. So watch PVA for clues. It will not, however, turn in the middle of nowhere.

Pennies haven't yet fallen; so indicates some bullish retailers still. Watch for buyer exhaustion. Follow the foreign flow of money though, not local.

Good counters to position when time turns ripe for Capricorn effect: kepcorp, wilmar, sembmar, noble, olam. Ho Bee is a possibility too. Play by DCA policy. Will give S/R lines at a later date.

cheers!

Overall signs not good for current market. Despite DJIA breaking 9,800, we haven't yet managed to clear 2700. that still remains the critical mark.

if once again we fail to break it, it'd mean a triple top formation. 2522 then is the lower end to watch.

i'm primarily worried about the pennies: they've been running like nobody's business. 20%, 30% in one day. Any logical person will tell you that no company's value can change so much in one day.

Which then hints that BBs are ramping up counters. Data supports this. I'm amazed the SGX doesn't clamp down on them, but then, SGX itself is listed. It is perhaps a distinct conflict of interest, where the regulator is listed, since the bourse earns by volume and value of stocks changing hands.

All in all, I'm seeing signs of Aug '07 and am discomfitted by it.

The one saving grace: if the blues can go up again. Repeat: for rally to continue, the blues must go up. No rally can be sustained by just pennies (which are local BBs playing). In fact, the running of pennies usually signify the tail end of a bull run. To this end, certain blues are maintaining strong showing however; it's foreign players selected buying. JPM and Merrill amongst them.

Gold has been going up strongly. Didn't fall to the 975 support but went only to 985 (SPDR GLD). The next TP will be 1200 per troy ounce.

If the USD/JPY drops below 88, it may precipitate a fall in equities. Currently though, as long as the USD goes down within the 90-92 range to the yen, markets will rally.

Keep nimble, folks.