11 March 2010 - SembCorp

There are times when I'm unable to check on the movements due to work commitment. That's when the heart beats faster and wonders what the hell happened to the stock.

Good thing I've got Mentor Ang to tell me that there's no hurry. Today's report will be short because I've not much to say anyway.


Breakdown:
Chart from Yahoo Finance.

Fig. 1. SembCorp Intraday - 11 March 2010

Now I'll refer you to Mentor Ang's latest lesson notes on Impatient and Patient buyers for this one.

The stock opened higher today (what we call a Gap Up), which is usually the cause after a good run and impatient buyers want in on the deal. Here's a change for the big patient buyers to bring the price down by faking a Sell-Down.

This corrects the price of the stock to a comfortable level of play for the patient players, and totally ruins the vibe for the impatient ones who rushed into the stock a good four cents higher.

Now with the market normal again, the patient ones can then work on jerking it up higher one bid at a time so that they can take their time on this one.

The end of the day saw a large up and down, probably because the patient hands got what they wanted and managed to push the price higher, and the impatient hands figured they cash out while they can before the same thing happens the next day.

Of course, that's one way of interpreting the chart. I'm going to need Mentor Ang to give his take on my analysis.

Tomorrow is crunch time for us, because a volume explosion will make us happy, while a dip in intensity and volume will mean we'll have to close the position.


SembCorp

Opening Price: $3.93
Previous Volume: 6,790
Closing Price: $3.94
Closing Volume: 4,130

Price Acquired: $3.89
Lots Acquired: 5
Break-even Price:$3.92

The Call: At a gap and run tomorrow, hold and wait till Intensity drops or Market Depth signal to close. At a low volume start, cut and close.