Sunday, April 16, 2006

Stock Market poised for an Election Rally?

The much anticipated elections is finally coming to a school or void deck near you! They always never fail to bring along a pre election rally in the stock market. Watch out for it. Straits Times Index chart shows that it is undecided whether to go further north or south. With elections around the corner, up? Sesdaq is different. The chart is very bullish and it's been marching all the way up since it broke the 100 points resistance. Did you notice what i just said? "Marching all the way up after it broke the resisitance". This is the principle of Blueline theory.

As for sector, did you guys notice, oil & gas play is rather subdued despite crude oil hitting highs near US$70 per barrel. Usually it will lead to a rally in the related industry. A quick check on the charts of these counters, it looks like they are consolidating. I will inform when i notice unusual movements.

While it is very good to see many blogs on the internet giving charts and stocks picks, visitors should always take it with a pinch of salt. Do not follow blindly. Just like the forums, i often see some underhand tactics of promoting a stock after it had been purchased. How did i know? Because when the message was posted, the stock had already ran with limited upside left. Think about it. Also, many bought and then returned to the authors and ask when to cut loss and when to take profit. You are putting yourself at the mercy of these authors. While i always try my best to help, but i feel very worried for people who were following blindly. I am the first to start with a quickpick list back in 2005 and after some fine tuning, i manage to provide you with a before it happens list of stocks. I noticed some blogs have them too recently. But do make sure you scrutinise the lists on every blog including mine and look at it's success rate, risk/reward ratio...etc.. Well for my quickpick list, although there are some who condemned me for making money in a bull market which I don't know why but many of you have encouraged me to continue sharing. I'm sure you can notice how some of the biggest gainers are found right here! I said it many times, i say it again, there is nothing wrong in profitting in a bull market! Why are people scorning and laughing at us? It is still good profits! They say in a bull market even monkeys make money, oh yeah? Try buying CAO, bank stocks? SIA? Will you make over the last few weeks although it's a bull market? Stock selection is important even in a bull market!

I advocate learning with me together and then one day you can trade confidently. Never have I wanted to turn my blog into a crystal ball. If I have that intention, you would not have seen me trying to explain why my blueline theory works and how to make use of it. I prefer to teach you how to fish rather than giving you the fishes everynight. Furthermore, reading and learning with me at my blog is free! Of course i hope you knew what to do to support GrowMoney Blog too. :D

Also, I have published 2 e-books on Trading over the weekend and sent them to my yahoo group. The first book "Charting with Decipher" requires you to do a "CTRL + Click" on the charts for you to view them and you need internet access because the chart is on my blog. The second book, "Decipher's protocols for successful trading" includes my own trading rules which had helped me along the way.

GrowMoney QuickPick
Stock: Line of least resistance
I will buy once they break the line of least resistance. My plan is simple, sit on it and ride the profits, if next day comes hesistation of not moving up or i detect the slightest selling, i will just cut my position.

Technic Oil: 0.765
SSH: 0.315
FerrorChina: 0.925
ChinaLifestyle: 0.315
BioTreat: 1.28
Rotary: 0.570
Fungchoi: 1.04
Hongfuk: 0.65
Suntec: 1.32
MemTech: 0.340
ChinaSky Chem: 1.06
YHI: 0.555
ChinaWheel: 0.44
Sinopipe: 0.360
China Hongxing: 1.40
ZhongGuo Power: 0.370
ChinaPetro: 0.740

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.