Thursday, October 05, 2006

The bulls are back!

What a day! Actually yesterday was suppose to be as happening as today. Everyone was caught by surprise of the lukewarm response of Asia's market to US's historical closing. However the 120 points finishing by Dow simply changed the mood. The bulls are back! For the whole day, I have seen constant buying, firm price actions and any pullback is weak. Finally many traders & investors had started to believe STI is not bearish! But i'm afraid they took too long. I have heard many people giving up trading as early as August because they believe market should correct. By now we should all know, market has defied them. It is highly important that we trade the direction where the market wants to go.

I remember during my first class in May'06, market had just crashed, I have told my dear friends not to be discouraged! Market will go back up after the worldcup! I even sent my yahoo group a message in July telling them to stop watching football and time to catch some good stocks! For my critics, please read the May to Sept Archives before jumping on my back again. :P Then again in my strategy class conducted in September'06, I have shown my dear friends the chart of STI telling them there are still time to load up good stocks! I am not telling you all these to boast, rather, I hope to instill in you the confidence that in a bear market, do not give up completely! The leaders will soon emerge when you least expect it to and lead the reversal. Stick with the leaders and you will be amptly rewarded!

My shifu say to go light on this wave up the market. Reason is simple, plenty of people died around this top and one can expect plenty of selling to recover their money. Not only that, i always remember how i tried to ride into new highs and often times see my profits eroded with pull backs and corrections. Hence this time round, I unloaded a couple of my holdings to realise profits. The wiseman always said, "sell on the way up". Paper profits remain paper until I sold.

Position Updates:
Cosco Corp: Still riding For the record, bought at 1.31.

MediaRing: I know the price has been slipping, but i'm still hanging on, will decide again. For me, because I have multiple positions and my portfolio is nett positive. Hence I can still hold if
MediaRing doesn't act funny. Afterall, it's FA is intact.

HSI CW: I bought at 0.635 last week and unloaded today at 0.830. :D Song arh! So far, HSI has given me 3 rounds of solid profits. My strategy is simple, buy at support levels. Anything in between, don't trade! Have patience to wait for pull back. Direction is important here and choosing the right warrants with strike and time to expiry is important as well. This is shared in my strategy class, I hope you guys find it useful. : ) HSI may still continue to move up somemore...but it's only maybe. I remember AC asked me with a gain of 22%, why am i still not cashing out? That time, market moves towards my position and I had to bear the swings emotionally. Now, my plan is to keep milking this index and accumulate my capital. : )

DMX: Bought at 0.665 and cut at 0.655. On a rally day and DMX still can't ignite it's engine, I see no point in getting my funds stuck here and decided to move it somewhere.

UTAC: Bought at 0.715 and sold at 0.735. Tech stocks have obviously fallen out of favour and not in play. I will revisit another time. My job as a trader is make my money work hard for me and not get stuck in a stock.

Celestial: Got this babe when it tested 1.52 support recently. Upside is blocked at 1.55 and 1.63 for now. If China plays are in, this one surely will rock the roof!

Capland: Got the warrants for capland when it is teasing it's all time high.

It is highly risky to be buying right now. Please analyse extensively. For me, I will be waiting for a pull back to strike again. : ) Safer, easier to make money. Remember the all time favourite phrase, "When no one is buying, you buy. When everyone wants to buy, you sell to them"

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.