US - Market Direction 01 (May 08 - Jul 08)

[Chiron]

My humble EW opinion on DOW.

Maybe iii of Wave C coming?

[HengHeng]

Thats very possible actually.

But what i'm looking for are stocks that has being clearing their "dirty" laundry it has entirely nothing to do with market indicies which are showing more downside potentials.

Well at least i know got someone "above" me , so support abit lor. Waiting for ML's share issue see can buy or not.


Merrill Lynch said it expects to take a $5.7 billion pretax writedown in the third quarter due to losses on the sale of mortgage assets and plans to raise at least $8.5 billion by selling new common shares.

Merrill said Singapore's Temasek would buy $3.4 billion of the offering. Merrill has already taken billions of dollars in write-downs in past quarters and said it sold key holdings including a 20 percent stake in Bloomberg when it announced second-quarter earnings.

Merrill said Monday it would pay $2.5 billion as required under a previous stock sale to state-run Temasek, along with $2.4 billion in required dividends to preferred shareholders.

[Chiron]

HH: as long its a winning strategy, its a good one. Under such tough market conditions, one must be very flexible to be able to keep the boat alive, let alone steering the ship in the right direction.

[millionairemind]

Long time never draw Ang Kong liao..

Rally attempt by all the indices are still intact, despite the big falls...



Last night was Day 10 of rally attempt... basically we are out of the zone where the strongest rally (trend shift) takes place.... but then hor... history has shown that a follow thro' beyond Day10 has worked, though a weak one.

As shown on the chart above, the Nasdaq (strongest of the 4 indices) had been going up on good volumes and going down on lower volumes than previous day.

It has yet to undercut its recent low yet... until it does, the rally attempt still holds.

Even if there is a follow thro', do consider buying in batches so that you can cut out if the rally fails within a week (yes, they do fail... follow thro' days only work 70% of the time). Add on to your buys IF the price is progressing with the index moves..

Be careful out there... it is not called The Battle for Investment Survival for nothing

Don't pre-empt the market, let it tell you what it has done..

[blid2def]

Source: http://www.reuters.com/article/ousiv/id ... 7220080728

Wall St sees SEC extending short-selling limits: report
Mon Jul 28, 2008 6:55am EDT

PHILADELPHIA (Reuters) - Wall Street executives expect the U.S. Securities and Exchange Commission to extend temporary curbs on short-selling and widen them to cover additional stocks, the Wall Street Journal reported.

The limits are set to expire on Tuesday, and financial executives expect the SEC to expand the limits beyond the 19 financial companies initially targeted, the WSJ reported in its electronic edition on Sunday.

Wall Street executives, lobbyists and hedge-fund industry representatives over the weekend had discussed asking the SEC to reconsider, the newspaper said.

During a call with regulators on Friday, the hedge fund industry trade group got indications that the SEC planned an extension of the emergency period and the limits could include insurance, housing-industry and financial stocks, the newspaper said.

The SEC is also working to make short-selling rules permanent, the newspaper said. The SEC staff is expected to narrow the options and make a recommendation to four SEC commissioners as soon as Monday, the newspaper said.

An SEC spokesperson was not immediately available to comment.

(Reporting by Jessica Hall; Editing by Clarence Fernandez)

I suppose for those stocks that are highly liquid, not much of an issue. But those on the buyins / short-squeeze lists, will be interesting maybe?

[kennynah]

mm : i would never disagree with you...u r too good..

for that matter, Naz has always been in a rally mode despite the drop from last Nov/Dec, when seen from a multiyear chart...

but it cannot be said the same about SPX and DJI....they both drop below the recent rally lows and so technically, these 2 indexes are not considered in a rally mode anymore..

((edited to add below))

the indexes have all registered a lower or very modest increase in volume compared to previous day. so despite the huge drop in indexes, it appears more a case of lack of demand rather than an oversupply.

typically, in a bearish environment, when index drop significantly, it would be very worrisome for the bulls if there was an accompanying spike in volumes. this is becos a spiked volume will mean that an excessive amount of selling, a far larger quantity of sellers exist, that drove the price down significantly...

at this stage, i am more neutral in my view...although secretly, i am still bullish bias...hahaha...

[millionairemind]

Got Da Ge K compliment me like that, I fly to the moon liao...

Quick, find a rope...

I make many mistakes, just did not show it here only... haha!!!

[blid2def]

For fun and laughter: Lim Kopi Ah!

[kennynah]

then followed by


and then next, call up all the canslim practitioners... question lai liao...

got such thing as inverted cup and handle bo? serious question, not making fun here...

any one can confirm ? thanks.

[millionairemind]

Wah lao, flip man!!!! This is a classic cup with a handle.. INVERTED!!!

RUN for the hills, sell everything... all hell breaks loose, come back next year!!! haha!!!!