Stock Market index breaks Resistance again!

It was a wide spread rally today and my holdings are in green! Some very old counters which time and again i have said the chart formation is pointing to a normal consolidation and thus i have refused to sell. Now, i'm rewarded for my convictions. The 2 counters are Media Ring and Rotary. Media Ring has broken out as of last week at 0.345. However, i will be very nimble on Rotary because more often than not, a heavy volume day always lead to another decline as per the chart history. If there is any stock that i think has shown similar controlled pattern would be Sunray. I think the current price is a good risk reward ratio. Support at 0.470 and resistance at 0.540. But if break 0.540, it's a new 52 weeks high. Judging from the strong display today, there should be somemore upside tomorrow...hence look at my quickpicks closely!!!

Let me share a story today. Someone bought Norelco this morning after picking it from my quickpick list. He soon sold for a quick profit of 1 cent because he wasn't comfortable with the way Norelco is trading. Guess what? Norelco stunned him and closes at 0.490. Would I have known Norelco will be so strong? How on earth did i know Hongfok, Midas too ran up so much? This is simply the breaking of line of least resistance at work. Study it, you won't regret.

Did i ever lost on buying a quickpick? Yes. I bought Labroy last week after it broke 1.52 and only to settle and trades between 1.50 to 1.52. Hence i am now sitting on a 1 cent to 2 cents paper lost on Labroy. I will jolly well cut when my contra is due. This is how i use quickpick, when a stock breaks it's 52 weeks high, it should go up further. If it doesn't, CUT! Why bother to hold and hope? There are other stocks breaking out, all we need is get into a runner and it will more than make up for the 1 loss. That to me is a sensible trading plan. An analogy i could draw here is, when you breakup with your first love, do you continue to wait for her/him and hope he/she returns to you? No! You would have moved on and found someone else! So why behave differently in stock market! :D


Rotary's chart

ElectroTech: Reversal sign was detected 15th March 2006. I bought at 0.525 and sold at 0.535 as it was a contra trade. My cash were tight. This is an example of how my small account has to be grown slowly. There is no way i can hold out because i ain't have the money to hold hence when i contra i always close the trade early. This reminds me of my favourite tagline....The rich gets richer. :) I'm sure if i have a larger trading account, the speed of growth will be so much faster as i have holding power.
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GrowMoney QuickPick
Stock: Line of least resistance
Sunray: 0.540
Labroy Marine: 1.52
Zhonguo Powerplus: 0.370
FerrorChina: 0.895
ChinaWheels: 0.440
AsiaEnv: 0.370
AIM: 0.380
UTAC: 0.985
Rotary: 0.595
Ascott: 1.17
Stats: 1.34
SGX: 4.00
Electrotech: 0.590
ChinaSun Bio: 0.735

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.