Mr. Market is discounting news... he is much faster than anyone out there!

On last Friday, there are 3 news that everyone should be aware of. First, all European bond auction went smoothly and both China and Japan have expressed their support for euro zone by purchasing their debts. Secondly, China central bank has raised reserve requirement ratio by 50-basis point due to raising inflation in domestic market. Lastly, the Singapore government had announced a series of measures to cool the property market due inflow of hot money. Singapore stock market, which works on a discounted mechanism, immediately price this news in and we see STI index falls to a low of 3224 before closing at 3245, which is still below the 3250 critical resistance. US market closed last week in green, and there is a return of confidence in the market. As such, we might see bull entering and pushing STI index higher.

I was having lunch with my colleagues and happens to talk about this stock AURIC PACIFIC GROUP. I'm not very sure about the business of this company, but the stock is giving me some hint from its recent price movement. This counter hits a high of 1.66 back in 2007 before taking a free fall and plunge to a low of 0.44 in 2009. Let's take a look at the daily chart below. Towards the end of Dec and last week, we saw a few high volume transaction, which suggests someone might be accumulating this counter. It seems like the stock has breakout from its consolidation base and moving towards previous double top resistance of 0.74. I set long term price target as 1.00, and mid term price target at 0.85. Do check for volume when price hits 0.74 as who knows this can turn out to be a triple top.

If you ask me whether this is a good buy, I will say yes and no. Because there are a lot of factors (e.g. investor horizon, risk appetite, holding power, fundamental play, technical play) to consider before putting money to risk, thus one should still based on his/her decision to enter the market. Everyone takes full responsibility for their portfolio, isn't it?

Many profits to everyone!