SGX breadth sucks

The graph below shows STI (blue) with the daily number of SGX stocks making 1 month highs (the scattered dots) since the start of the March rally. These are smoothed as a 1-month moving average (red line). Sub 20c stocks are excluded.

The divergence since Aug is too clear. How long can this continue? Either the STI must go down, or the number of stocks making highs must go up.

I did not find this indicator useful in predicting past market tops. So it is only to show what is happening now.

Bought SIA Eng

Tues 24th Nov 09. Bought 3 lots @ 3.07.

Cut loss 2.85.

SIA Eng

After 5 months of flatlining, breaks out on high vol.

Large C&H.

Sppt @ 2.85, next resistance at 3.25.

Still a non trending market until proven otherwise, makes me hesitant to buy on breakout.

Perfect buy point would have been several days ago after it pulled back to the support.

Bought KepLand

Fri 20th Nov 09: bought 3 lots @ $3.05.

Cut loss at $2.75 (previous low).

KepLand breakout?

$3.00 is the previous June high, as well as 50% of the white candlestick.

Pros:

• Clearly broken out on high vol, with low vol retracement.
• Daily price/vol action shows accumulation since July.

Cons:

• Buy on breakout risky in non-trending mkt. Next sppt after $3.00 is hard to determine. At what point would I cut loss?

US mkt currently down nearly 2% tonight, see how it goes and how this S'pore mkt reacts tmr. Will KepLand hold at $3.00?

Bought Bukit Sembawang, Rotary Engineering

Wed 18th-Nov-09:

• 10 lots Rotary Engineering @ 1.07
• 2 lots Bukit Sembawang @ 4.88

Both showing MACD-divergence, may have broken out of trendline. I await: HH on high vol.

My scanning criteria. I want:

• tocks that have not fallen much in the past 2 month.
• Volume should be high on up-days and lower on down days. Rotary shows this, BS a little. In the current market, there are a lot of stocks showing distribution (eg: SGX, Guocoland).
• MACD or MACD-H divergence with price.

I took positions abt half my normal size, because still not sure of overall market direction:

• US indexes making new highs, but no solid volume confirmation, and depth had not confirmed the uptrend (12th Nov) either.
• Singapore market seems trendless.
• But the individual charts good with well defined cut loss points... must remind myself that by the time everything is perfect, the opportunity will be gone.

With hindsight, bought at intraday high as they went down today :( But at least today's down was light volume.

Added more money

+70K to my account.

Now have 225K cash, almost all of my savings.