Sunday, March 02, 2008

Bad news ignored

The market has been ignoring all the bad news and absorbing them very well with the index keep heading higher. It baffled me and i was so tempted to turn long because as a rule of thumb, if the market doesn't go down with bad news, it means it will turn up. But looking at the market, i notice many rallies had no decent follow through and hence held back. I told myself, if market really is turning up, the next sell-off will be well absorbed and we move higher. The price actions thus far has not been that of a typical bull market. The profits from Chartered becomes very precious because i had to cut loss on Allgreen when it threatens to break 1.30... so it became eat pig pay dog. The most boring part is.... there was a sell signal on 20th Feb in the market (4g1r on STI) and according to the system, 21st Feb i should look to short sell. But due to my busy work schedule i had to give it a miss. Nevermind though... market is always there!
By the way, my method is FREELY available. However for best result, it is best that you combine with other analysis like classical analysis, indicators...etc... my method can be found at

DJ: although a brutal sell off happened on Friday due to AIG and UBS more than expected loss. Is this a surprise to the market? I do not think so. All along, it is plain obvious this is the sector to short and anything out from them is expected to be bad. So why the sell-off? I think it is just an excuse to take profit. Either this, or the last rally was actually a chance for smartmoney to get the hell out! But since it closed just nice at the triangle support. I shall observe the rebound. Either we have a Triangle pattern failure or we have a upwards breakout of the A-triangle.

Monday at open, i shall observe the selling... because to me, if market dips below 3000 and able to bounce back, it would have been supported at the triangle trend support.

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