I went long HSI just before HSI close yesterday. It closed with a hammer with a late flourish. DJ on the hourly chart has a bullish divergence and given the fact that it has gone down in successive sessions, it increases the probability of a T-rebound. Alas, it only manages a small gain in a volatile session. My position swung from profit to loss and then rebound into profit only to lose ground again before closing. I opt to cut my position versus hoping it will swing into profit again. The key word here is "hope". I am wrong, it will be a loser game to hang on to a position and hope. Trading index is different from stocks. We have to be discipline and hoping will lead to tremendous losses.
Looking at the whole market, the gains are given back very easily. No follow through in buying and the brutal selling. Looking at the bigger picture, all the lower highs is ringing alarm bell. Other than short sell signals using my 4g1r system, i did not receive any good buy signals for 4r1g system. This is the reason why i am shunning stocks for now and focussing on index.
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
