As seen from my previous posts, I already had a plan and an opinion about where the market is heading. Over the last few sessions, I promptly executed my plans calmly as the market moves in the direction of my anticipations. My plan was to trim down on my stock positions and to trade on the short side.
It isn't difficult to see that rebounds lately had always been a short and quick affair. There was no sustained rebound and this is ringing alarm in my head. Through the weeks, I have dumped my stocks on rebound. Right now i'm left with 3 stocks. Later I will explain the rationale of keeping these 3 stocks. Index wise, i profited from 2 directions in quick trades. 2 weeks ago, STI was supported at 3300, I long the CW and took a quick profit. Today STI tested 3300 as resistance and it failed during intraday, i went for the put warrants and before the end of the day took a quick profit again. HSI's incredible plunge from positive 1000 to negative is a warning. However, a quick check on Dow Jones, it can rebound to 13,300 thereabts and hence i decided to keep my profits first and re look later. I will be tracking global indices for now and will be looking forward to more trades on the indices instead of individual stocks.
I am pleased to inform that there are only 7 seats left in my 2 day Technical Analysis Course, happening from 1st Sept to 2nd Sept. Should the market bottom by then, the concept and strategies shared will come at a good time!
It's very interesting to know that these participants are serious about learning. Despite the current turmoil, instead of feeling frustrated and paralysed, they turned frustrations into actions! They seize this opportunitiy to learn more about Technical Analysis and be prepared for the next opportunity.
GrowMoney Growth Fund
Jasper
HLH
Yongnam
I intend to ride through the storm with the above stocks and dumped the rest at a loss. This loss eroded part of my profits built from Mar'07 to Jul'07. However the profits from Jul'06 to Mar'07 is safe in the bank. This should limit my exposure should the stock market really crash. When market crash, bid and offer spread will be spectacular. In a worse case scenario, there could be no bid queue to sell to. Hence do not take a crash too lightly. I simply do not like the cloud above credit woes and it's impact on the global economy. The most sensible thing to do is to step aside and reassess the situation and get out while i can.
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
