Thursday, March 19, 2009

Dow to test 7800?

I had never expected my sti short to be worse off than hsi. Hsi is struggling near 13k and my shorts still look safe for now. But i can't say the same to sti. The strength of bank sector seems to be proping up sti as i had to plan my exit strategy. i began to doubt my opinion of an intra week pull back. More so of the reversal. It really looks like we are gonna head north somemore. No doubt we have been up several days and market may pull back, there is no stopping of the market to extend this rally till those major resistances. I feel really uneasy abt my short positions because it seems like i am wrong and is too early.

I painted two scenarios early in the week, one of which is that we should see an intra-week pull back... this didn't happen. Thus, the next scenario of the market making shallow pull backs and edge higher is happening. This may mean last week could be the key reversal. As of now, there is no catalyst for the market to plunge but on the contary, plenty of bullish statements and news from Wall Street. Buy dips time?

Thus i went long on dow. My plan is tonight we may see dow rally again and if so, 7.8k looks a possible target. Hence i will take my long profit during new york time. This will allow me to lock in some profits to withstand the gap up tomorrow morning if any. An ideal scenario is after i take my profit, Dow tua lao sai and tomorrow Asia sell down! :D Then i end up nett win both ways. haha

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