Tuesday, February 10, 2009

A Resilient Market

We are now being swing in a very tiny range... breakout may be akan datang. And the triggering news? Of course is the bail out plan... week ago i mentioned this is what the market may be waiting.. and while it is waiting, neither the support nor resistance was broken. Plenty of whipsaws around.

To be honest, as the days go by, I am getting more and more restless. I feel like adding my shorts on the way up. At the same time i am also wary of what could happen in China. Jiabao shushu may disclose their stimulus plan anytime. The market is also sucking in all the bad news and selling very well. But in a bear market i am still cautious. When it breaks down, it can go down twice as fast as it crawls up. So meanwhile i will just wait for the stupid bailout plan details to be out. It's better than losing money unneccessarily. Livermore said, there is a time to long, there is a time to short. There is also a time to stand aside. One of the 3 times he went bankrupt was in the aftermath of the great depression. Then he wrote that the market was thin and in a tight range. He was a breakout trader... it was during that period he lost alot of money and he realised it is impossible to make money in that market.

Hearsay the congress is unhappy with the way the last bailout fund was used. But Obama keep pushing... by hook and by crook i think it's going Obama's way. Government intervention can spoil my bear party.

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