Tomorrow's speech by Ah Ben shall determine our direction. While market has factored in the interest rate hike, it's the future interest rate outlook that is under the microscope. If Ben says, "We have done enough for this year. There will be no further hikes until 2007". Wah! Then you better sell car sell house must buy ah!!! *kidding* It's time i start to trade more seriously since the interest in market has hot up. :D Been guilty about watching too much foot ball! WAh! If only i'm so sensible during my schooling days! hahahaha
Market has quietly crept up during the worldcup. I was too engrossed in World Cup and didn't pay much attention to market until my eyes caught the many bottoms of the china stocks. (I kept a list of high volume china stocks) Then I immediately cast my net. @#$@#!@ First to run away was Hongguo at 0.520 and Hongxing at 1.11. I was too slow to react and they blast off! Without wasting too much time i latch on to LandWind, Nikkei babies and Longcheer. Landwind tested my patience my drifting down for the first week. Nikkei babies drifted at the money and Longcheer was the more dangerous trade. I applied trading trend here with very tight stop loss. I bought at 0.845 and used minor low 0.820 as my cut loss level. For I know, if longcheer is strong, it will rally next few sessions. True enough, i never see my buy level after second day. Sensing the china stocks has moved alot, our local oil plays start to tango. Rotational play! I began to think rotational play was on going and tried to play smart by anticipating STI components to rally too and bought Cosco Corp last week. Sad to say, it's still in tight trading range between 1.21 to 1.24......just have to wait it out. Today I sold LandWind and Longcheer after they both came down from their day's high shaprly. Something which will not happen in a strong market. Initiatlly, i wanted to hold and wait it out, but upon seeing same weakness in other china stocks, I sold. Especially Longcheer because i am late into the trend and will be caught offside if there is a wild swing down. Hence I took profit off Landwind and Longcheer. I'm now left with Cosco Corp and Nikkei Babies which expire in Sept so that gives me some time to hang around. Remember, babies has severe time decay during the last 30 days. Now i'm enjoying theta and a slow delta and yet ITM. So I shall wait to see Nikkei 16,000 points. I am betting market to move up after Ben's speech. If market is firm tomorrow, i might pick up more cosco and other china stocks. A reminder, index stocks have not moved much yet.
After doing my sentiment study of the market, heavy profit taking accross the board. Everyone is awaiting Ben's speech. As the saying goes, when everyone is selling, we buy! Hence don't just sit and wait....make full use of your money management and cut loss discipline to take some risk!
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.
