Tuesday, December 29, 2009

SGX breadth jumps

Note: Graph here has an error, see next post.

In the last 2 days' rally, SGX breadth jumped significantly. Scattered dots below are the number of stocks above 20c (as of today's price) making 1 month highs. Looking at the 'peak' readings (dots marked with green circles) breadth has been declining since August. Last 2 days shows a clear break in this trend.

Is this the start of a new bull? My guess is... yes.

The number of new highs, although larger than the previous 4 months, is still a lot lower than in the Apr and Aug peaks, so this rally could have some way to run. Also, the SGX top 20 vol shows only 5 stocks below 20c, so there isn't too much junk flying yet.


I need to be more aggressive in buying. How?
  • The mkt does seem overbought after 6 straight up days (US indices), should I wait for a pullback? Would only be expecting a brief 1-2 day pullback, similiar to the Mar rally.
  • Many stocks are now quite far (mabye 10%) away from their support (cut-loss levels).
  • Maybe I should just double up my existing successful bets, which were small, as bought in a non-trending market.

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