Monday, December 08, 2008

Market heads higher despite bad numbers

A worse than expected job losses shook the market during the early trading hours but as the clock winds down, it made a spectacular U-turn to close higher. The support at 8150 hold ground. I was all ready to short more should we close below this level... I guess the automobile bail out gave some hope that most of the jobs will be saved. 8834 will be my next resistance...with a view of a stronger resistance at the round number 9k.

Looking at HSI, 15,200 to 15,800 level is where i will pick my fight. This is the resistance in which i shall wait patiently for a CS reversal. I am using daily chart here. Should HSI turns bullish or bearish from this point for a Christmas selldown or rally, the banks or insurance companies should move in tandem... using CFDs, my options are unlimited.

As for STI, as wierd as it looked, the whole week we were actually trading in a very tight range. It seems to me like something is going to happen soon. There could be more positives than negatives here as the market didn't go down on bad news. Tricky isn't it? 2 weeks ago, i saw the same strength and long capitaland only to see market tanked on me. In the same week, i hedged with Ascendas reits and on last Friday, increase my stable of shorts with SIA Engrg short. My plan is, if market were to go on a Christmas rally, I will lift my shorts and ride capland to 3.27 and this should give me a nett profit. However, if market tanks, my short positions will hedge my long on capland. The logic is simple, because when the market comes down, it moves faster. I added a short on Amazon again after it opens weak and trades lower. The only scenario that can kill my plan is the market trades sideway and not going anywhere.

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SGX: Kepcorp CT1 strategy

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