STI and others

Singapore market- The ST index along with several China related small
cap
stocks has corrected over the past 2 days. This was the correction that
we
were looking out for and the present pullback is seen as a correction
of
the advance of the move from 2477- 2554 for the ST Index. Additionally,
the
pullback has a corrective wave pattern, implying that this is just a
minor
pullback and a prelude to further gains. A similar pattern was formed
1-2
month ago, when the index drifted sideways between 2518 to 2477. This
correction is expected to be shorter and could very well terminate
today
near 2325-2330 range. As for China related small caps, we do not see
any
evidence of a sector wide trend reversal. We note that similar Hong
Kong
listed China H Share and Shanghai B Share indices are still trending
up
strongly. As such, we think that overall uptrend is still intact for
the ST
index and for China related stocks in general.

Stocks

Ellipsiz- Earlier in the week, we had recommended 62-63.5 range as a
preferred entry level for the stock. The stock had reached the target
range
and we believe this is opportune moment to get into the stock. The big
picture remains positive, which is that the stock has broken out of
triangle pattern and is consolidating in a pennant like formation.
Recommend a buy at $0.62-0.625 on expectation of a retest towards $0.66
and
if that is broken towards $0.71.

DMX- We had recommended accumulating the stock near $0.95 and targeted
a
move towards $1.02. The stock had reached a high of $1.04 and had
pulled
back towards $0.965 over 4 consecutive days. Watch support level near
$0.95-0.96. Resistance remains $1.02-1.03. Trade the range.


(See attached file: Ellipsiz.jpg)(See attached file: DMX.jpg)


Best Regards

K Ajith

64195411