This picture was taken during my honeymoon in Berns.... never had the chance to post it up .... finally today's actions justify this post! hahaha
The day began with a bang. This is expected because DJ had a strong finishing last week. I was looking for a whitecandle finishing in the local bourse but we have none. The confirming candle was in DJ's chart. As the day worn on, it is not difficult to detect the persistent buying strength. Alas, we closed strongly! Notably the banks! What gains! Honestly, i am very tempted to initiate a short position. But i knew this is not the way to trade a market. The market moves in a non-random way and i already have a set of tools to decipher it. Hence I should be patience and wait for the signal to short instead of trading because I "feel" or i "think". Now this is certainly suicidal and we shall call this trading by emotions.
As most of you already knew, I was contributing technical analysis article to SmartInvestor magazine in 2007. From April'08 onwards, I will not do that anymore. Instead, i will be contributing market outlook to the magazine! :D It's kinda challenging because i have to study the market inside out inorder to get the charts to start talking to me. But nevertheless, it's a challenge i enjoy! Ta bi, i don't like the way i have to write in cambridge style english... it's tough. Blogging is so much easier! haha can use singlish, use hokkien. wahahaha I remember when i started in 2006, due to my bad english, i often joked at the seminars, " i don't care if my english is bad, so long you can understand what i am saying!" :D
By the way, in 2007, ChartNexus flagship course was only available in Singapore. Now, we are in 3 countries! Just like phua chu kang, Best in Singapore and some say KL and Jakarta! wahahaha I can't change the way people use computers because Steve Job already done it. I can't change the way people use internet because Google is already leading. What i aspire to do will be to influence and change the way people trade. By influencing, we will be looking to build an academy focussing on technical analysis. By changing, we will be looking to improve chartnexus platform to simplicity yet powerful. huat arh!
The money flow index already showing a positive divergence and with Jan's low nearby, I reckon the probability of a rebound is high this time. If anything, this is where bottom fishing make sense. To the trained investor, this is how we look for rebound to long. For the untrained investor, so long the price is lower than the day before, it is cheap and can buy and most of the time it will get lower. This is why i say there are techniques to decipher the market and trade accordingly. The best part? It is not difficult to learn! But you must have preserverance and lots of practice! Join us at SGX auditorium to learn more about technical analysis for only $20!
Ferrochina was picked up by my XPertTrader screening. There is bullish divergence in the indicators and a potential double bottom is in the making. There are rules to determine when is a bottom formed, hence i will not jump the gun. Livermore once said this, "The price i pay doesn't matter, it must go up after i buy."
At the next ChartNexus Stock Selection seminar, Hendrick will be showing the different ways how we can screen the stock market for the 3 directions namely, uptrend, downtrend and sideways. Inaddition, we will also be looking forward to learning how to trade Wilmar going forward. This is the link to register for your FREE seat. http://www.chartnexus.com/events/details.php?eid=1388
Alright, that's all for tonight. Going forward, i will be looking out for heavy dumping near resistance. Once i see this, i will initiate short position.
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
