Have you ever heard the song wind of change by scorpion before? The recent fluctuation of oil price caused by hurricane Katrina reminded me of that song. On the latest report, it was said that Katrina may miss hitting the gulf platforms. It sent the oil price tumbling down to below US$67 per barrel. As for the demand and supply factor, it seems to be well controlled. Last I heard was that there ain't enough refineries. The fluctuations of the oil price could be trading at work. Remember, there are many big sharks out there. We have to be alert and run away as fast as possible when these sharks are coming. Be it equities, futures or warrants.
Selling volume is drying up on most counters. We see modest gains in STI during the last 2 sessions. I am still not going to buy yet. If I don't see all the smart money going in, why should i? They are the experts with funds that will drive the market. Without them, it's going to be range play. There are many ways to trade the market. But looking at my small trading account, I will be better off buying during rallies. My money management rules doesn't give me a very good risk/reward if I were to trade trading range.
Our market has been pretty depressed for so long, time to test the resistance. I anticipate at least 2 good days this week given that oil price retreated and our own economy is poised for a better than expected 2H. Selling volume is drying up too on most bluechips. Don't forget the gossip of Elections coming. : )
I am still waiting for any counters that showed strengths in a breakout. Sorry guys, no charts again. I'm sure you will understand why. Such a quiet and sideway trading market, I will be plotting blindly if I can give you a good lobang (opportunity).
