Sunday, October 29, 2006

How deep will the retracement be?

A poor GDP provided enough reason for traders to take profit and halted Dow's progression into the uncharted territories. I checked and found Dow's retracement can test 11,800. On the hourly chart of Dow, supported near 12,000. Let us see what unfolds on Monday night. The poor GDP could be the catalyst for a decrease of interest rate by Big Ben maybe?

On the regional scene, HSI and Nikkei finished Friday's session on a weaker note. STI followed the footsteps as traders took profits in unison. I am one of them! haha I square off my HSI Call Warrants when the morning rally couldn't sustain and HSI was retracing along with the poor closing of Nikkei. This one is bought at 0.410 and sold at 0.475. Next trade was to close my Capland's call warrant. Bought at 0.170 and sold at 0.200. My reason for selling is because if STI is to retrace, Capland will definitely be involved. I will just wait for another opportunity to trade it again. Protecting my profits come first!

Current Holdings:
ChinaSun @ 0.775
ChinaDairy @ 0.560
MediaRing @ 0.360
SembKim @ 0.655
CoscoCorp @ 1.31
TatHong @ 1.17

I will be watching 2 levels of possible support for STI. 2686 and 2670. Pullbacks and retracement is only healthy and natural. With Dow's negative close, we should have reactions at the opening bell. Reminder, HSI is closed tomorrow.

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.