Sunday, April 13, 2008

Market left confused

My convictions paid off as my market opinon was acted out by the market. Following my plan, i initiated more short positions and was looking forward for STI to crash below 3k. Alas, Friday's surprising strong performance forced me to cover back my shorts intra-day. I remembered reading this phrase from Livermore's book, "If you see a train coming at you at 80km/hr, you are plain stupid to still stand in it's way. We can always jump off first, wait for it to past and then jump back onto the track." Similarly, i was feeling the same as i saw the buying strength and i especially do not like the way the selling was absorbed. Without saying, Nikkei and HSI big rally give the bulls a boost. Boy a i glad i covered early and not leave it to 5pm as the late buying really squeezed lots of shorts out there. All these before Dow opened for trading few hours later... now i wish i haven't sold.... hahaha

Overnight, Dow crashed at long last! It was the reason why i was so cautious about turning long in local market as i expected a big drop to happen... but it just wouldn't. Guess what? the day i took my profits off my short positions, it crashed 259 points. How frustrating! Think i have to go waterloo street temple to get some flowers home to bath in...

Despite having decent profits from last week's operations, i wasn't happy. How to be happy when the market is swinging up and down with such volatility. I don't like it when i can't ride on trend for the easy money. Ok since i have sold, i think i can officially declare the counter which i have profited from the upside despite the market swings left and right. ISDN. Check out it's chart. Simply amazing. I didn't want to post online for fear of inducing you to buy and this is unethical since i am vested. Now that i have sold, no qualms about sharing. I sold the day i add one more short position in the market. This is part of my money mgmt. I wasn't comfortable with too many positions so i had to reduce.

I am still umm ga wan... tomorrow if it breaks last week low, i may initiate new shorts. However i am cautious, because no doubt, things are not looking pretty for Dow, the strong buying on Friday in Asia is something i should take note of.

STI forms a hanging man on the weekly chart... i will be looking out for signs of black candle confirmation.

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