After performing my usual 4 steps screening with XPertTrader, banking stocks and Straits Asia appeared to look interesting technically. For banking stocks, they will have a short term rally should Ben unexpectedly raise the interest rate. From the charts, DBS and OCBC looks like reversing. For Straits Asia, I see a possible chance to do counter-trend trading here. With it's well known volatility, this short-term opportunity should be worth taking a look.
Golden Agri together with the rest of the agriculture stocks got hammered today. This furthers reinforced my belief that i should not be riding on trends as there is non to speak of in this current market. It is better to take profit at resistance level or support level if short. Just checked the news and saw that oil slips $4 on increase in inventory. Tsk tsk... news must have leaked out during Asia trading hours, otherwise why did these stocks lao sai in anticipations of the news? Price moves ahead of news my friends....
STI together with Dow is now trading very very close to 2008's low. Should we break that low, I suspect the bulls will throw in the white towel and bears will be in charge for quite some time. With earning season coming up, look out for nasty surprise.
If you are feeling confuse over the current market, there is only one way to stay focussed and composed. Let me share a few tricks:
a) Take smaller position than usual to minimise risk.
b) Form an opinion on the stock market and trade your opinion. (XP subscribers, we will be sharing on market directions at this coming Momentum session)
c) Be patient for the next trade instead of rushing into one.
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
