Monday, February 09, 2009

Some things doesn't change

By now most of us would have already heard the news on Capitaland issuing rights. haha I just find the whole episode amusing.. Didn't they replied recently that they have no idea of the high trading volume and crushed any talk of "issuing rights"? What happened today? wahahaha IT's not the first time and definitely not the last time this had happened. I am so used to this by now. Well i don't blame anyone for this, infact without these things happening in the stock market, how to use technical analysis?

SPC: While most of the stocks already hit 100dma and turned down, this is a laggard. It has not met resistance at 100DMA and looked destined to fall. Conflicting signal here with bollinger breakout vs 100dma as resistance. This happens so often in analysis. So which one do we listen to? We should really use risk/reward to decide if we should trade at current level. Today it closed with a bearish engulfing. It needs no confirmation.

Commodities can buy? I have attached the two charts on Olam and noble, both are commodities play. Both are showing rising wedge pattern. To trade rising wedge, i will wait patiently for it to restest the upper line. That will be a good MTL. This is because if the pattern is true, that is where it offers the best risk reward. Of course seeing a CS reversal is bonus. OTherwise a break of the lower line with a bearish market breadth is also a great opportunity.

UOL - Latest discovery. Product of TT1-short! With capitaland needing to raise cash, they may say all they want, i only trust my charts. Market is full of lies and illusions. We choose what we want to see.

A reminder of the China Stimulus plan. This could be the reason why HSI was so resilient. This is despite Nikkei's weakness at closing. I reckon many are pinning hopes on the China stimulus plan. A friend reminded me, the last round, governments around the globe too injected stimulus package in different sizes... did it work? Of course we proceed to see lower prices. This bear market escaped even the elitest in the finance world. Should i even bother to believe what i read anymore? haha

Currently i'm still staying with my HSI short and NOL short. Thankfully NOL threatens to the downside today. But it's still eat pig pay dog for me since HSI rebounded to my shorting level. At 10,300 points, market already priced in the stimulus package? Sell on news on the cards? How about bradley turn date? We shall see...

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.