Thursday, July 21, 2005

Descendents of Dragon has unpegged

China's revaluation of the yuan hit the internet news late Thursday evening. How will it affect businesses in China? Let's draw an analogy.
If i am an importer when my currency is higher, i will import cheaper
If i am an exporter when my currency is higher, my customer will pay more thus i have to squeeze my margin to compete.
So, do know what China counters you are buying. Decide whether they export or import. Tomorrow will be an interesting show.

HGM surprised me and my fellow trader friends with it's white candle today. The volume is quite heavy at 4 million. Let's revisit the double bottom chart i posted last week.
From T.A point of view, some form of reversal is in the making, given the poor sentiment towards high steel prices, never thought it actually came true. I hope this reversal can test the all time high for the third time!

As for the general market, mixed day of trading yet again. Profit taking sets in for property counters after their amazing run up for the past 2 days.

Much to my dismay, Unifiber closed down at 0.390 today! Very very disappointed. I was anticipating to collect profits, never thought that i would need to study the cut loss level today. What to do, such is luck. Why didn't i buy Jurong Tech? Hi-pi or St-Eng? Of so many gems, i had to choose unifiber? Something that refuse to move? Give me a break! Confidence sometimes need a bit of luck to make one feel better!

3 gems looks set to be delisted from my Decipher Gems list. Check out the charts. No new gem spotted by my trading system today.