hmm u apply this to STI index chart also?

hhahaha....

The bull trap in Genting last week is a perfect example of chart 'manipulation'...

This is because all fund managers' eyes are glued to the chart...

It was rather deceptive, because just before the trading halt, the price did break out of the resistance thus creating many maximum bulls...

Then these maximum bullish bulls were disappointed when they lost heavily on resumption of trading...

I guess it's best to divesify your portfolio into equities, bonds and commodities.

Perhaps at this point of time, I would think a proportion of not more than 30% should be in equities, maintain about 30% in bonds and the remaining in commodities (such as gold, crude palm oil, crude oil etc).

It seems like people are running away to commodities such as gold as there are raising uncertainities in the current market ~ many predicted a correction of ~ 15~20% but the question is what if it doesnt comes so soon? Market may correct marginally before the reveal of 3Q09 earning results, and I see no good reason for a major correction to come soon especially with the macro-economic data improving or in-line with consensus. Instead 3Q09 earnings results, may even be a booster to push the equities higher as companies become more efficient on cost-saving. And if this happens, I suspect that funds and other retailer investors will flood in to buy in to push it even higher.

The only reason which I can think of so far is the weakening dollar which I feel may be an hinderance to exporting economy such as Japan. Another reason which may cause the market to correct drastically will be the sudden withdrawal of government stimulus.

Ultimately, it's about risk versus opportunity cost. Diversifying your portfolio and adjusting the various weightage of the investments will likely to help you to reduce your risk exposure and possibly optimise opportunity cost.

Since we are not able to predict when the market will correct again (with all the whatever analysis, sometimes also no use). Choose stocks with genuine value, it doesnt necessary means it must be dirt-cheap now, but a valuable company will likely to withhold its position under tough condition and during blooming seasons, generate attractive revenue ~ avoid speculative counters (and counters which generate 1-time off positive results and share prices fly like no-one business).

Just my 2-cent worth. Hope it is helpful.

so u are a TA expert?

well, i know someone a TA expert, he also lose big during 07 sell down...

still prefer fishing at the bottom and hold it a period of times then sell...

now, market is very crazy...well, i still think that market need to be slow down or correction for its better next bull run...

so i am not going to chase any stock now...

Here I agree with Kelly. We are in a new cycle. There is nothing wrong keeping long term and just know when to sell and don't be surprised those who  bought at March low and keep long term make more than some who trade too much aftee 4 years. There will of course be some who trade and make more than those who keep long term and those are the sharp ones

cheongwee ... i am very curious ....what do u base on for ur 'predictions' ... if TA isn't ur cup of tea....just curious ..

(until the last few postings ,  i was under the impression that u were a male ... hahaha .. excuse my ignorance ..wishing u a successful surgery and speedy recovery ..)

well...i dun agree on it...

i know an uncle...he bought singtel when it was 1 dollars...and sgx when it was just 1 or 2 dollars...but he sold it during 07 bull run....

see, how much he earn?

A_K Francis...thks ..but i understand u always memtion u like beer, but pls do so with limit..too much beer is bad for liver...i thk i myself have too much of a gd thing (wine)...so now is pay back time..

my surgeon is an expert in opening ppl heart..i hope he dont play share...if his counter is down , i will be down also...u know down to where ...hoh......