Bank stocks

Despite the STI rallying close to 80 points since breakout at 3000, the 3 banks have not been performing. In fact, the 3 of them are testing support near their respective support lines. The main component stocks that have strapped the STI along the rocket ride are mainly Genting ,Jardine C&C as well as the commodity stocks. Should the banks break below 8.70 OCBC, 13.80 DBS, 18.43 UOB, i believe one should be wary going long for the time being. The correction in financials will take a toll on the index and especially if Genting's steriods run out.

On the other hand, this will be a good opportunity to load up on the bank stocks should the price action prove that the sector finds strength in the pullback to rally further. In that case, the process of playing catchup will mean the upside could be pretty violent. Keep a close watch on the financials.