Tuesday, 11 December 2012

Singapore Stock Tip: All 3 singapore banks hit a major roadblock

Dear Friends,

I am still holidaying in Hong Kong and Macau, but can't help to take a look at the market every night. I am now currently looking at stocks to short to hedge my long position going ahead. We think a lot of us have earned quite a bit from this run ever since the drop a few weeks ago when we advised all to accumulate some strong earnings stocks. Now I am looking to unwind some position and do some hedging.

If you are also considering a short for hedging against your long position, there is a sector that I would recommend to see.

UOB: Today it hit a high of 19.92, near to the major big resistance of $20 which I think will be having some difficulty going past unless Fiscal Cliff is over.

OCBC: OCBC hits highest 9.75 today with a big red candle. For OCBC, 9.75 and 9.80 are resistances it must clear. Even if it clear these, $10 is a major roadblock I think will be very difficult to cross. If it reach $10, without hesitation, I would short first. So too for now as 9.75 is a minor resistance and with both other banks weak, this one can't be spared too.

DBS: Triple Top at $15, $14.94 to be exact is a major major resistance. Today it brought down both UOB and OCBC. A big short to consider now.

Just be careful of any long position for the banking sector. You may consider doing pair hedging by shorting this sector against your long position going into the year ahead of the Fiscal Cliff incident.

Regards
Daniel

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