Sunday, June 1, 2008

market trend: telltale sign of some thing's cooking out there in the ocean?

Only Thursday i was there bullshitting about cycles of share market and signs identification and there it happened on Friday.. the very first sign of stirring action pointing to something must be happening out there in the centre of the ocean.

What we had on Friday was a sudden surge in volume. Our market volume increased from 457M shares to 818M shares traded. An increase substantial enough for one to consider paying more attention to the market by looking for further signs to substantiate this sudden change in volume pattern. After all, things do happen for a reason.

What can we expect? As i have mentioned earlier that we are at the conclusion stage of a full cycle, it is normal to have choppy waves reaction near the shore. So do expect some volatility for the next few days be it index wise or stock wise.

What we need to look for? Market volume has always been a useful indicator to gauge the market interests and sentiments. What would be appropriate will be a volatility in volume in the region of 500M to 800M shares traded. Likewise for index to maintain a choppy range with a critical support line tagged at 1238.

From my experience, i would favor a sudden pull back in index at the end of the cycle as the start of a new cycle will always reacts oppositely to the reactions of the end cycle. Be it a last shake out before a good run or a trap before a plunge.

Meanwhile, look closely now.

1 comment:

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