Sunday, March 08, 2009

Review of market directions

An amazing week had passed. Amazing because Asia is still hanging above the 52-week low while Dow is in a very nice downtrend. Each day market expected Dow to rebound and it does the opposite. I am beginning to wonder if Asia is going to break those lows anytime soon? I covered most of my positions leaving only UOL & ST-ENG short. You may have read... The moment i covered NOL... it really went down big time! Talk about timing! haha it never fails to happen ya? I am sure you have similar experience to share. For me, i try my best to ignore, i did what i felt was right at that moment because most of my profit targets are met and i see no reason in waiting for a rebound to chomp off substantial profits. Now with the profits built thus far, I can look forward to the next move.

Nikkei: Last Friday failed to crash through 7k... My short position in Nikkei is covered when my buy limit order was triggered in New York time. The 7k support just refused to bulk. Now on the daily chart, i saw a mini "W" and resistance will be about 7.5k... The bullish divergence on MacD is the reason why i opt not to ride Nikkei as yet. I find trading Nikkei index very interesting... not only can you trade it during Asia time zone, it is tradable even in Europe and New York time. This is because i think the CFD is on nikkei futures and not the cash index itself.

HSI: 11,800 is the support which looks to be tested in coming days. However, i opt not to short at breakout as i feel the risk to be caught in a whipsaw may be high. Thus, i will be lookin at 12.6k to 12.8k to be resistance since there is a price gap.

Lets see how Monday trades.

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.