Thursday, January 08, 2009

A coin can stand on the edge afterall

Remember last night i was saying head or tail, i still win. The difference is whether big profit or small. The only way i can lose is the coin stood on it's edge. This is exactly what threatens to happen. It is amazing how my watchlist is full of reds then only F&N is trading up!!! How to explain this phenomenon? It's like market purposely want to squeeze me... well, if you are new to trading, Welcome to Trading... haha The best part is HSI keeps going lower and lower while F&N go higher and higher.. For the record, i am long hsi and short F&N... My view is market to be firm and trade higher to CNY. Hence the F&N is actually a hedge for my HSI long. My position is bigger in F&N and a small one in HSI. My plan was to accumulate HSI for CNY celebrations.

The last line of defence will be 13,800 thereabts... if HSI breaks that.. be prepared to see a breakdown. From where we close, it is just another 600 points away. Hence if even this level fails to hold. I cannot be a stubborn bull.

I had wanted to scoop more long positions today. However, my opinion of a firm Thursday went awry. I am wrong. That's why i didn't execute my order to buy more hsi. After my volume screening, today's volume is much lower than previous days. Although it doesn't neccessary mean it is a good thing. There will be a light of hope if Dow can support above 8,300. I would also need to see HSI lead Asia markets to a firm Friday. OTherwise, that dreadful 100MA line may be where history will remember as the major resistance that turned the market.

Finally, here are the results of stocks trading at/near 20MA:
CityDev (bearish div)
SIA (bearish div)

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.