Growmoney quickpick list has generated fewer and fewer stocks over the last week. I have mentioned how i struggled to find stocks from well defined chart bases. Infact the list got shorter on Wednesday night with only 4. This is consistent to what I have read, when there are no more well defined base consolidating, the market has already run up.....the next phase of correction will sets in. That's where the chart bases will form again.
The explanation is simple, with many stocks already broken out from chart bases, the supply of buyers will run out. This is what happened when many of them retraced. If there are supply of buyers, the stock will go up and not down. When there are no buyers, Sellers will appear and when stock declines, more people join in the selling. This basic understanding is a must to know. Last Thursday/Friday market rallied, many contra players have to sell this week. Some of the counters i have glanced through retraced with light volume...that is cool. Market or rather your stocks have to rebound with volume! Otherwise be very careful. I will also look out for bargain hunters to return tomorrow. If there are no bargain hunters, there could be more downside.
Remember, preserve your capital, cut if you must, there are plenty more chances of making it back!
I also want to warn...be very careful of what you read in the shoutbox during trading hours, my blog has a large following...some evil do'ers might make use of us to help push a stock up for him to dump. Becareful if you see anyone over promote a stock. Take it with a pinch of salt. Also do not disclose the price level you bought in the shoutbox, cannot let the enemy know your trump card.
I think the list below is really badly wanted!
Stocks to be careful of:
Sunray
Stamford Tyres
Sinopipe
Rotary
MemTech
Meghmani
LuxKing
Jadason
Hongwei
Innovalues
Golden Agri
Eucon
Darco
DBS
CG Tech
C&O
Biotreat
Ausgrp
AsiaPharm
Asia Tiger
Asia Power
Ace Achieve
Stocks you might be interested:
SPC
Thomson Medical
Swissco
Sembkim
Courage Marine
TatHong
Hongkong Land
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.
