It is all about NEWS...

Last Friday, we saw some profit taking action and which pause the rally of the past few days. The good thing is STI index manages to close above the support 3250, but investors still need to be wary as some weird things is happen on other asset class.

Lets take a look at the metal commodities: Gold and Silver. The price of 2 charts has broke the critical trendline that provides support since Nov (for gold) and Oct (for Silver). On the weekly chart, the bearish engulfing candlestick shows further price decline in the week coming. Below I provide possible level to watch out for these 2 precious metals. The implication of such a move means the USD Index will strengthen, since the two assets shares a negative correlation ship.

 

How about news trading in our local market? Kim Eng opens for trading on Friday with price gap up and closing at approximately 12.5% premium over the last closing price $2.70. The news of Maybank proposal to acquire a major stake of Kim Eng at offer price $3.10/share has sent this counter gap up, bringing up share price of similar counters like UOB Kayhian and GK Goh. Since things are "clear", sell on news! Smart investors are most likely vested, and so for those who have a bigger risk appetite, nibble and go...

 




Happy profit!!!!