Bought YZJ Shipbldg SGD at 1.10

Did you guess correctly? I bought YZJ (or Yang Zi Jiang as it was formerly known) a few days back.

Now some people will tell me the 200 SMA was supporting the price at 1.10. And yes that is true. And if you have any experience reading financial charts in the markets, you really do not need to use the SMA indicator to see that. I can see it or guess that the 200 SMA is there, no indicator required. It is not rocket science, it is experience. 

Anyway, I bought based on trend reversal and seeing the price action. The price broke to lows of 1.02 recently. You could say it broke the 1.08 support. Then it reversed strongly, came back up to 1.13, then it dipped to 1.10. And I bought on the dip.

That is reason enough for me to buy. The false break and subsequent strong momentum confirming the false break. The bigger reason has to do with the previous post, the bigger picture really.

Getting back to the Stock Market Again

In recent times, I noticed the STI is keeping at it and just keeps knocking on the 3200 level. This mildly surprise me and I thought the market might be worth a second look. So I look at the chart and I see it finally breaking 3200.

It seems to be breaking out of its downtrend, the downtrend which was holding me off this market for a while now.

So let us look at the DOW. It has been in an uptrend while the STI was in a downtrend for 2013. It has been a divergence of trends, and now it seems the STI is joining in the uptrend as well. 

I am betting on a resumption of the Dow uptrend and a reversal of STI's downtrend. Hence I have bought a stock in the Singapore market. Can you guess what it is? If on the other hand, you think otherwise about the market, feel free to leave a comment. Til my next post, risk small and frequent!