Wednesday, October 18, 2006

Fully Loaded! Going for goal!

If you are wondering, why are there no articles? Let me explain, when I last blogged last Wednesday, market has been moving up for a couple of session and I feel a pull back should occur and I decide to hold back and wait for it to happen. It seems to be a wise decision because the risk/reward isn't great. The other reason was, it's the result season in US and I was busying loading up on call options and following the US news.

Let me refresh my positions:
ChinaSun @ 0.775
ChinaDairy @ 0.560
MediaRing @ 0.360
SembKim @ 0.655
CoscoCorp @ 1.31
CapLand Warrants Strike 5.15 @ 0.170
TatHong @ 1.17
HSICW Strike 18200 @ 0.410

As you can see, I have picked up quite a number of stocks over the last few sessions. TatHong was picked up by a new rule i developed to screen for very light volume retracement. It's FA is fantastic and hence I picked up. I had wanted Hongguo as well but my queue at 0.715 was not done and hence I decided not to chase. But Hongguo will be one stock I will load up once i dispose my other China plays. According to past experience, it is wiser not to hold too many China Stocks. 1 bad surprise can cause accross the board China play sell down. But recent news releases are very positive for China stocks to a point that I have this feeling that china plays is being deliberately enticed to move higher.

Scrutinising my portfolio further, u will notice not all of them are in profits, but what to do? They refuse to move!! Especially MediaRing and SembKim! But once they move, I think will be powerful. I am not cutting anything as yet. Let us see what tomorrow brings.

As for my late HSI Call Warrant purchase today, I decided to go for OTM warrant versus ITM. ITM will have higher gearing which means it will move faster then OTM relative to the underlying. But this is a double edged sword. What happens if you get the direction wrong? It will move against you just as fast! Hence my strategy for trading warrants is, if i'm wrong in my direction, my warrants must move slower, but when i'm correct in my direction, my warrants will turn from OTM to ITM and it's gearing will be increasing! Nikkei's after lunch reversal caught my eye and I tracked HSI's futures after it reopens at 2:30pm. It indeed rallies from negative to positive and pushing 18,000 levels. My gut feel say wait for a pull back and to my pleasant surprise it really did! Dudes, when something like that happens, it means anticipation of market movement is correct and we should follow through on our anticipations. This is a repetition of my earlier HSI trades. Apart from gut feel, I had also studied the movement of DJ and there are many results going to be announced and of those, i did a research, should be positive. Also how the resistance turns support for HSI worked wonders.

For Market to tua rally, Tomolo headline, "Rice convinced Kim" a picture of them shaking hands. hahahaha

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.