Interesting week ahead

Surprise suprise! After going through my scans, I could not find any good risk/reward trade. I think it is the time now for those vested early to reap in the rewards. Unfortunately, it is also the time where the uninformed average investor buys at a poorer risk/reward factor. It is a known fact that only 10% of investors are winners, 90% are losers. Some of the most obvious counters that ran away were from the technology sector where time and again I have noticed the light trading volume and low price volatility. For those with 100% cash, fear not! I have also notice some counters undergoing normal corrections. One of them is HuanHsin. When it's time to look at them, you will hear it first from growmoney blog!

After studying the charts posted in the November Archives, I found the following important clues regarding breakouts.

1) There are heavy volume on up days than down days.
2) There should be a shake out on heavy volume near the bottom of the chart formation.
3) Low price volatility on low volume is the key to successful breakout.

I'm sure there are more, but the above are the most common clues. The most important thing is, these are exactly what William J. O'Neil wrote in his book. It happened in the US market, it happened over the last 50 years and it happened in our market in this time! If you want to own this book, you can find it at the local bookstore or at my new site growmoneyshop.blogspot.com . At this site, i recommend books that I found most useful in my trading education.



Straits Times Index - crucial time for the bluechips.



Huan Hsin