Thursday, July 21, 2005

Why is a bullish market mixed?

STI rallied again yesterday with focus on banking and property stocks again. Market is still taking the news positively. Late afternoon profit taking was seen. However I observed that winners and losers are still quite mixed. Oil price has slipped under US$57 per barrel, US market continue to head north with Nasdaq at a 4 yr high. Regional markets are all running bullishly. My question is, why is our market not convincing? Anyone can advise me? I am feeling really uncomfortable seeing 50-50 situation in the losers and gainers stats. A bullish market to me was thought to be gainers leading losers at least at a ratio of 2:1.

With STI reaching 3 yr high, overbought sentiment sets in. Retracement ought to come in sooner or later. Those buyers who chased high price last week are suffering now. From what I see, only property and blue chips are moving. Penny stocks are quite quiet. Lesson revisited! Never chase high price.

Decipher Gems suffered with Rotary and Jaya holdings falling the most. This sets up a question in me about profit taking. Although the counters weekly trend is still up, do i wait till most of my profits turn into air and exit only at the turn of the weekly trend? Maybe I should protect 50% of paper profit? Which means to say, when a counter retrace back 50% of my paper profits, i sell and keep my money. Worth a thought.

Unifiber still's been 6 trading sessions of consolidating. I thought yesterday's heavy buy up was a sign to come. However, it never did.'s so demanding emotionally. I think cases like unifiber can replace fishing as an activity man, you keep waiting for it to break upwards just like you are to wait for a fish to get caught in your hook! hahaha! Patience.

No new Gem was found in my system yesterday.