Sunday, November 23, 2008
Outlook on STI
Let us begin this week with an outlook on STI. We all know government is coming out with plans to help us during this challenging times. Even the budget day was brought forward to January. Very swift actions. However, it is what happens in the US that counts. We are still going to be heavily influence by the market big boys like HSI, Nikkei and the cursed Dow. Back to the chart, the week ended with a bullish engulfing pattern upon Friday's closing. However there is still nothing much to cheer about on the weekly chart. Resistance level i will be watching is 1916 and the 20-day moving average. So no actions from me till I see how market trades at that level. It is important to see individual stock at their resistances level too. The double bottom on the STI looks to be happening. I like the volume behaviour and all i need is the right wing of the "W". On top of that, alot of stocks has higher low... a good sign.. maybe the relief rally which many have been hoping for is here.
As for Dow, it closed above 8k... however, the rebound last Friday may not indicate the worst is over. The only good thing i observe last week was how Asia market held their ground despite the rout in US. The BB on Dow weekly opened up. The brief rebound may be just relief....maybe a re-test of the breakout of support last week. To invalid this opinion, it must break and stay above 8k.
After my screening on XPertTrader, there were no good short signals for tomorrow. Using XPertTrader is increasingly important. I mean, more than one thousand stocks.... how on earth am i going to know which stock to trade. With those trading rules, it's like opening my eyes to those hidden signals... like rafflesMG, it doesn't appear frequently in the top volume list. But it's sell signal was picked up by TT2(course screening strategy).
After my return from holidays, in my haste(Greed), i made two bad trades. Although the loss is within the 2% risk mgmt, but still i am feeling unhappy. It seems like the pride in me has grown. I began to hate losing. But losing is part and parcel of this game which i am so familiar with. What i am doing now is trying to gain the momentum back. If you are like me, don't dispair. I have walked this path before and i know after many small losses, a big win is waiting in queue. : ) I am going to be agreessive in the coming months and amass my wealth. Day and night, i be looking for money making opportunities. Huat ah!
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