Looking at the stock market... really looks like a headless chicken, doesn't seem going down, at the same time no confidence to head higher. I am tempted to go long but had to pinch myself to remember the primary trend. How about short? No again because support ain't broken. Then what about short at resistance? Now I saw two types of resistances in most stocks, one of immediate high, the other one would be of the major resistance line.
Unlike previous month, the market was moving according to my anticipation through sector rotation. This is the easiest way i can read the direction of the market. Currently the sectors were not moving much and there was no clear leading sector as yet. Hence the wait continues. i just need the next move to come and then i shall hoot tua tua. My shifu said in trading, if you are on a roll, don't let loose. Dare dare win more.
The last time market is in such a range got to be May to Jun 2008. Then i threw caution to the wind and went long at support. Happiness was what i felt when market indeed rally higher and i sold on the way up. However, at the next dip, i longed more. Without a warning the market fell like a stone in the following month. I think i made peanuts by giving back a substantial amount of my profits. I realised my mistake was not following the primary trend. Then i was fooled by "it is the bottom". Not to mention because i wasn't fully focused on trading last year.
If the market has bottomed, this is actually the kind of boring market we should be witnessing. I will be observing for the characteristics of a solid chart base from volume behaviour and price patterns. For those of you who have attended the training, we want to see bullish candlestick patterns at support levels. It is covered in your training and i think the topic is on multiple patterns analysis.
Currently the market seems to be drawing in buyers... may be a trap?
Now for the bad news.... i forgotten to remove my BAC(NYSE) long order last week and my order was hit! Cham liao.. now got to baby sit BAC... I didn't even know that my order was triggered until i checked my accounts today. Anyway, the good news is, I am profitable for the second consecutive month. : ) go go go! Just like EPL, i shall take every month as a final and make sure i am profitable. This way by end of the year, how not to be nett profitable? Patience....... loon ah!
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.
