Tuesday, September 18, 2007

Market refuses to head lower

I decided to cut my Federal last Friday after a failed breakout. Today I cut my HSIPW after HSI did not follow through yesterday's selling. After monitoring the price actions for the whole day, it seems to me that it doesn't want to go down. At every dip, there is plenty of buyers. As I am buying the warrants, i cannot forget it is a wasting asset due to the time decay factor. If I had shorted the futures, then I can perfects trade my short position higher, or do a scale up selling.

My plan was to lift either my stocks or puts according to where the market is likely to head, when europe market opened steady, and hsi close firm, i had to lift my puts in favour of a positive reaction by the market tomorrow.

Another reason for lifting my HSIPW is that, I don't want to risk the upside due to a possible interest rate cut. Although I do not think cutting the interest rate can solve the problem, but who am i to go against the market? Rather than holding on to the put warrants and stand against the tide, I believe after this rally, we may risk a possible downside. I don't know how far can this rally goes, but since it's going up, i shall long until the market showed otherwise.

Plenty of banks are giving results this week in US. This is key to understand the impact of subprime or credit crunch.

Next week's Technical Analysis class is sold out once again and October's class is filling up. The current demand for Technical Analysis knowledge is just amazing. This sets me thinking, with more and more retail investors knowing how to avoid risk, can this bull run be more sustainable than we thought?

I will also start to kick start a series of Technical Analysis training videos. As you can see, the first on Fibonacci has been posted. I hope to help in a small way. Every week, i will upload a new training video hence stay tuned! : )

GrowMoney Growth Fund
LC Dev
Adv Hldg

If Ah Ben really cut rate, reits, properties should benefit. Ausgrp was picked up by my Trading system.

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.