Livermore said, "Opinions are often wrong and market is always right". I remembered getting bearish about Hang Seng and was getting ready to buy the put warrants 2 weeks ago, that was my opinion and i didn't act on it until the market shows me it is turning. Last week there was a chance to buy the PW on Hang Seng when the shooting star on Wednesday was confirmed with a black candle on Thursday. I didn't execute my plan. I was careful, as Nikkei, Dow Jones, Nasdaq and STI were pushing ahead. I remembered, it was easier to win when global markets showed similar signs. So this was a choice of, do I want to take the risk or do I want to wait for a better opportunity. I opt for the latter because from my experience, i know market always present another opportunity, i just have to be patience and wait for the signal to arrive. Trading inbetween often results in unneccessary loss. Nothing wrong here although I missed a great chance to profit. I remember reading this article about Trading Gurus, when their trading account grow bigger, they take lesser risk. My account is still small, I need to grow my capital so I must be careful in my trades and not take huge risk. If professionals are careful with their customer's money, why should I be a Rambo with my own money!
Stock Market showed that it is not spared with Newton's law. What goes up must come down. We had a great run up last week and today market just have to retrace. But the magnitude of retrace is pretty scary. Both my stocks got hit real bad and I had to assess the damage tonight. For a healthy uptrend, there ought to be recovery this week. We should not see another heavy selling day otherwise it will be deja vu May'06... Let us observe what the market is trying to do before we act on it.
Cosco: RSI looks to be trending down and if support breaks, price should also break. Fibbo Retracement levels are in black, last breakout point 1.51 should hold as support.
UTAC: Price retraced to Double Bottom (Green) pinnacle 0.715. A handle could form with low volume, but it should not retrace more than 50% from the pinnacle to the bottom of the double bottom. I will be watching 0.690 closely.
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.
