Friday, August 15, 2008

Shortists squeezed

For this week, it is not hard to notice many stocks are not going down. Yesterday i covered my noble shorts, and today i took my profits on Ferror after a strong closing. This evening it is expected to report a good set of results and from the actions, it looked like it may be very good. Hence i opt to take my profits off the table first. Currently market is squeezing the shortists... i saw many stocks

ChinaFish has a classic candlestick reversal pattern.... together with many S-shares, a rebound on the cards? Maybe another lower high in the making? Some of them staves off 2008 lows. Interesting. With Dow strong strong ignoring a inflationary CPI... tomolo got chance.

Currently oil price is going south and market shrugs off the strong CPI. CPI was high due to energy prices. Now with oil price slipping, commodities slipping, it brings hope to the market that the CPI will decrease as well. A stronger dollar will also help. After a brief decline, we are now trading near the highs again! I am eyeing USDJPY 110 levels... i will see how market trades at this level. If it doesn't crack or has a bear div, i may initiate a short position. I remember, one of the reason given for the sharp rally in oil price was the decline of the USD. Hence, it is to my benefit to observe the relationship.

I am still eyeing HSI 21k. Today it nearly came to test it.... nevermind, i shall be patience.. to me, it is the most attractive level to long. But if i can't get it, i won't risk more just to go long. I will watch out for the resistance to short then.

I have also heard many ChartNexus users complain to me that my blog is too difficult to understand. Why I sometime long sometime short, sometime have both positions. Here i would explain abit more in details. But fundamentally, i am a technical trader who decipher the market sentiment and psychology. Also, i practise money mgmt. Many would think, money management is only position sizing. But for me, more than it. This is where you decide you make peanuts in the market or creating serious wealth. At my seminar the night before, i had actually wanted to share more... however time was not on my side. Maybe next time. But here's a sneak preview. You can have positions in long and short. But you need to have a core direction. Like for me, i think that the market was coming down since last month. Hence I went on a shorting trip. But found stock like oceanus good to long. Hence my plan is, if i am wrong, market were to head higher, oceanus will run fast while i sq off my shorts. Thus oceanus will keep my profits growing. If market was to go down, then i can sq off oceanus and then my shorts will make me money. But what about if the market doesn't move. This is where your technical analysis comes into play. At the point i made my trades, the market has very good volume and is moving downwards. That's why your timing is important.

DISCLAIMER: The contents in this website are for fun reading and must not be taken as a buy or sell advice. You must do your own analysis on top of my postings. By reading this blog, you agreed that i am not responsible for your trading.