Impact or less than 20c. . Open a OTC2 counter market
End of bull market. . Mid June 2016
Interest rate rise to 2.5 to 3 percent.. v dangerous...
Property market lag stock market by 6 mths.. economy or unemployment rate lag by as much as 1 year..
Bubble will definitely burst by 4 percent... Interest rate.. will not be last time 5 percent..
Yellen forecast 2.25 percent by 2016.. but it should be higher interest rate..
Be careful when interest rate above 3 percent liao..
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Acquirer company.. 80 percent will go down..
Acquiree company. . 99 percent will go up.. reason.. must pay more than what company price otherwise director won't sell..
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Market always very short sighted.. e.g. OCBC bought Wing Hang.. good for OCBC for next 10 years.. but it eat into their EPS for this quarter. . Will drop below what analyst predict..
For this type of news... best to sell on the day it gap up.. or most one day after. .
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Generally buy on reversal or breakout. . 2 ways to buy stock. .
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Breakout for SG stocks (3 key reasons!)
1. $1-$3 stock..
A. Breakout by 5 cents and above(within 5 cents is a buffer. . Distribution zone)
B. Volume expands (RELATIVE to previous few days)
Key reason :***need institution or ching Kay to push through! ! To push and break resistance!
C. Whole candle shows strength (Relative. . White marubozu. . Bullish engulfing)
Or Strong Hammer..
2. $3-$10 stock
Break 10 cents above or below
Volume expands
Whole candle shows strength
***within 10 cents is a "Distribution" or buying or selling zone. . Need this 10c buffer!
Rem market maker not very good.. not definitely allow you to touch the resistance or support line.. so need a buffer and create a distribution zone!
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First thing to see stock..is not see indicator..
See first plain chart and volume see pattern. . E.g. breakout?
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2 key candlestick
1. Marubozu
(Long body candle indicate speed. . Speed of how fast white candle speed up)
Speed at breakout candle v impt. . Why???
Because will determine institution if they want you retailers to join in with them..
Otherwise you will find many fake breakout.. then cry wolf many times then later they buy big time..
Instution will suddenly buy big volume and go in super fast to push the price up..
2. Hammer
(Or hanging man)
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Chart pattern.. combine
1. Double bottom plus triangle.. then breakout of distribution zone..
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Keys
1. Combing of various chart pattern. . E.g. double bottom plus triangle
2. Strong candlestick.. Marubozu , hammer, hanging man with super long shadow
- speed
- Institution buying
3. Distribution zone breakup or breakdown
4. Gap
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How to determine reversal
Cannot break support or resistance of distribution zone..
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