Wednesday, October 22, 2008

Selling into strength

The pattern in recent weeks seems to be selling into rallies. I observed many stocks hit their resistance and fell back. In November Issue of Smart Investor, i wrote that this market has got no confidence. I also observed many stocks are in a nice downtrend, even the index is going down nicely. However, there was a suspension of shorting through my ang mo platform. I called them up and they told me an email will be sent to inform me when we can use the platform to short the Singapore stocks again. With 3 short positions, adding to short was not my priority so i couldn't care less. Initially i thought it was banned by exchange, but another brokerage house can still short. So i let it pass.

Today took my profits from UOL and prefered to ride on Yanlord and HKland instead. I am not comfortable with 3 shorts because STI is near the 1800 level. My friend advised me to be wary of a big rebound near this level which may squeeze my profits. It's always good to be taking profits on the way down. Just as in the bull market, i also take my profits on the way up. Risk management!

Recently, the course screening rule known as the TT2 short was making waves among the graduates because of the high probability. If you think you want to find out more about this rule, just go to and join one of the previews.

CapitalMall: Another stock picked by TT2.

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.