I just want to alert you to a magnificent breakout by one of the stocks in my portfolio today. Bkawan, being a good plantation stock, is enjoying some added liquidity from buyers flying into quality. If you’re a swing trader looking to make a quick buck over the next few days, I can’t think of a better set up than this. But be careful to set your stops at 8.2 and have the discipline to pull the trigger if it doesn’t work out. This is a pure technical setup.
The Edge posted yet another article today remarking at the KLSE’s 7 week-high here. The last time they did that it dropped 2 days later by almost 30 points. That was on 12 July when I remarked that the smart money was going to push the market just slightly above the shoulder level at 932. Well, we are back at those levels today after a brief interruption by the Israel-Lebenon conflict. Now that geopolitical issues are out of the way, the sharks are getting back to the task at hand. I expect another spurt up before the fall. There are many telltale signs that the bears are sill gaining the upper hand: 1. Higher highs on weaker volumes, 2) Flight to value (defensive stocks going out). But I believe that any opportunity to offload stocks at a high price will be seized by people wanting to get out, causing liquidity to flow out of the market for the next few months. If we see strength in the next few days I will probably take the opportunity to lighten up to around 25-75%equity/cash ratio.
KLSE
