Sunday, October 05, 2008

Bailout plan no big deal

After being rejected, the bailout plan finally got approved for the second time. When i was long S&P, my anticipation was a reactive rally to the approval. I was wrong. The market did a sell on news to close the week negative. 10,000 level may be tested in coming days. Althought the bailout plan was approved, the slew of economic data that came last week were bad. Even oil fell below US$90.... then.... why on earth are we going to have a 20% increase in electricity bills for??? Tey say is because of forward something... then throw out some terms which nobody understands? It's like when someone ask me how fast is Ferarri, i answered, because of the 0.55 mm diameter of the cylinder, it can combust the air and fuel better.... What the heck! Anyway, if it's forward, econ data pointing to slow down, GDP forecase is down, Oil price is down, How come going forward it's going up???

I sold my Synear after it doesn't go down despite broadbase market is going down. The logic is simple, Synear may not be the stock that will lead the downfall. Those that were going down are local bluechips. After throwing out Synear, i am all ready for the next chance to short. Currently most of the stocks are languishing near their support levels... i will exercise patience in waiting at resistance for a good risk / reward entry.

Now for stocks, many have completed the "Ice Kachang" formation. I will be particularly interested in bluechips over china shares. The best option is to have more exposure to bluechips than to S-shares.

Currently at ChartNexus, we are prepaing to move to a new training center. The first ChartNexus Traders Club will meet up at this new training center. The 4 hour session will cover market direction, sector analysis and stock picks. I'm sure this is what our graduates have been waiting for! :D

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