It was all over Money section of the local newspaper… small caps are rallying. The FTSE ST Small Caps Index surged 18.4% since 8 April 2009. And yesterday was the busiest day of the year for Singapore stock market with 3.79 billion shares worth $1.35 billion changing hands.

Penny Stocks Trading Volume Churned by House Dealers

With so many house dealers working in tendem, it was no wonder that many of the penny stocks traded in record volume.

More volume means more brokerage fees.

With discussion abuzz in the local stock trading forum, it is not too difficult to suck in all those “retail investors” looking for a quick profit.

I always thought that penny stocks are easier to manipulate and retailer investors went in more like punters in a casino than caution investors.

Time to take profit for penny stocks, don’t be caught when the houses start to sell down.

I think many of the index linked stocks are over bought and technical correction is imminent. So, it’s better to wait for the correction before buying more. Go take a long weekend!

Double Bottom Pattern

The double bottom is a major reversal pattern that forms after an extended downtrend. The pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between.

Source: Stockchart.com