It's Shopping Time for Christmas!

So, there has been a synchronised effort to cut global interest rates.

STI is up 70 points today, led by Commodities and O & G. I think, this should be the beginning of the long-awaited relief rally, which technically, can last till spring next year.

Why do I think that a relief rally has begun? Firstly, visible price increase. Secondly, price increase are accompanied by increased volumes.

Since this is a counter-trend rally (note major trend is still down), I would not bother to wait for confirmation of trend reversal (we are a long way off from that), nor for pattern formation (it will be too late by then).

I will adopt a simple, hit-and-run strategy. Look for a theme. The theme in this run is commodities. I found three suitable candidates, Wilmar, Olam and Noble. All blue-chip stocks. No point looking at second liners, because by the time they come into play, it will be too late.

My strategy:
1. Wait for RSI > 30. (Olam is already passed, but I just need to check on CD effect).
2. Buy once cross-over, and use Darvas strategy for take-profit.
2. Cut loss at recent low.

I have decided to become a bull in a bear market, even if it is only temporarily.