Tuesday, April 15, 2008

Market selling subdued

After Monday's plunge, I notice the volume wasn't at the high side. Dow's mixed closing suggested that the bears are taking a breather. Will it continue tonight, no one will know for sure. I have seen one day plunge, next day doji and then gap down again. But the market actions after the plunge was different from what i remembered. Hence there is a chance market will react differently. Another observation is how many of the stocks refuse to break last week's low. The logic is simple, if it is really bearish, we would have gone down swiftly. Hence, i found the actions biased to the upside. However, we must be wary of a bear flag in the making. I cannot ignore the fact that bad news have been absorbed very well by the market. It doesn't seem to make sense that the market can moves up with bad news all around. What i can make out of this is, let us profit from this rebound and then turn short accordingly when market decides to digest the bad news. I waited for 2 weeks before pulling the trigger to short last week. Patience will be rewarded. Like what Raymond said, "Our goal is not to trade often, but to trade profitably". I have strong reasons to believe, the worst is yet to come. This pretendance by the market will one day shows the true colors.

My team and I will be at SGX Auditorium sharing trading strategies with like-minded investors this coming Thursday. If market continues to edge higher cautiously from today, i'm sure the "live" sharing will be very beneficial and meaningful.

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