Market is undergoing mood swing. It is not the first time, it starts brightly and ends with a whisper. I never like this to happen especially to the stocks i owned...Jtech and Sino-env. I sold both today and still keeping Cosco as it showed strength today. Tuesday and Wednesday I will not be around and hence will not be able to react to any adverse movements. Sino-env had to be sold because I bought upon brokeout of 0.945 and today I sold at 0.950, suffering brokerage loss. It had went up to 0.985 today but I didn't sell. I don't feel stupid. I am letting my profits run. When a stock breaksout, it should continue especially at new highs. If there are enough supply to the buyers, most likely distribution in progress. I may be wrong, but I rather be wrong within my cut loss percentage then to hold and hope. For I know, a true breakout will be like Celestial or Cosco. They break and don't look back. I sold my Jtech after it fails to finish brightly and closing nearer to it's day low. I bought at 1.03 and sold at 1.12. Again, the stock touched a high of 1.17, but i don't feel stupid. My game plan is to let my profit run and cut my losses short. This way, I can be wrong 7 out of 10 times and my 3 times can more than cover back.
Today's market volume crossed 1 billion mark. Time to watch out for retracement. Nikkei and HSI are trading near resistance including Dow Jones and STI. I never like to buy near resistance. It's tougher to make money here since there is little upside left. A good time to buy would be when market retraces and many people dare not buy. Otherwise, it is also lucrative to look at indices put warrants. If you are interested, do choose an at the money or near the money or slightly out of the money warrants with longer time expiry if you can find.
Have a roaring good time guys!
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.
