Thursday, December 19, 2013

USA Celeberate Start Of Tapering , STI Not Excited!

Dow was up 292 pts, STI closed mixed,  up only 8 pts due to a sharp reversal in Hang Seng, hitting a high of 23404  at opening only  to close at 22888. It was drag down by China short term money rates spiking up for a second day as the PBOC refused to inject liquidity into the market.

Funds flow are clearly favouring the developed markets out of emerging markets.I stay bearish on STI unless it can hold above 3135

Spore blue chips remained weak with players selling into every rebound. Although the broad market is quiet, some penny stocks are seeing some speculative play coming back.

Villianz and Otto Marine spectacular run up is spilling into another penny stocks and traders are begining to feel the sense of speculative fever returning. I like Villianz, Otto, Mermaid,  Hankore, EMS, SIIC env.  These are the current leaders. The secret to  penny stock play is the stay focus on a few  winners, don't   chase the market, accumulate with the BBs and act on the first break with volume, take some profit off the table and ride the balance of the outstanding position. Hope this penny rally with run till CNY and everyone gets a Hong Pow!
All posts and charts are for educational and illustration purposes only

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