I wanted to post my comment last night but i wasn't feeling exactly too well. Slept before 9pm last night and i never find the time to post my comment this morning. And now, i don't know whether it is appropriate to give my view on the trend especially when we have tested 1297 level yesterday and again today. Yeah right, an immediate double top in 2 consecutive day and that puts us in a neither/nor situation.
Nevertheless, i will take this as a challenge and try to apply all my know-hows to this current situation. First, we have to look at what are the signs available. Volume wise, it's still healthily consistent. Momentum wise, steel stocks are ready to take a correction. So beware..
To keep the momentum going, there is a need for rotation play. Look into water stocks and selective glcs stocks preferably related to iskandar southern corridor related stocks. However, i strongly advise against speculation as it is not worth the risk to go on speculation at this stage when our market is still at the tail-end of the consolidation cycle. Risk reward ratio is still not in favor of speculation. One need to be very sharp and precise. Daytrade if possible.
Index wise, the immediate resistant is still at 1297 and it is critical that this level have to be tested and break out again tomorrow. Otherwise, it will be another range bound market. One positive indicator will be from the futures today. The futures index did break its short term resistant at 1297.50 momentarily before it corrected and closed at 1295. Under normal circumstances, i would take the cash market as the guide but today i chose to take the lead from the futures market.
Yes i would take a small long on the futures tomorrow with a stop loss point at 1288. Still it is favorable to punt the futures as the risk reward ratio is of equal status. Good luck to you till you hear from me again.