Monday, September 25, 2006

The calm before the storm

It was an extremely boring day at the market as many stocks drifted aimlessly. Cheapo stocks continue to hog the top volume. Some stocks were beaten down and Midas was one of them. I had initially planned to add Midas if the support at 0.890 holds. But it has gave way.

I took HSI Put Warrants this time after I detected hesistance in breaking new highs. In reality, HSI has moved up 3 days in a roll and hence any pull back shouldn't be surprising.

I added one more interesting stock to my watchlist, LongCheer. It was picked up by one of my trading rules in XpertTrader. Resistance at 0.865 turns support for now. Indicators showing oversold.

Many people are calling for the market to correct. So far market has been defying gravity. I continue to watch and so far nothing bearish has come out of it. Infact most stocks are declining without heavy volume. However, buying must return, otherwise the selling can be self sustained and continue in what we call constant selling.

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.