Wednesday, June 03, 2009

Bulls got slayed in the final hours

The morning began with a quick peek at how Dow closes.. A mere 19 points up and Nikkei was flat.. i heaved a huge sigh of relief as i am wary of bearish confirmation today since there were many ugly candles yesterday. The day erupted into a rally throughout the day and financial and property led strongly. However, just like yesterday, the day ends like a fart. I view the afternoon selloff as a bearish sign with many stocks unable to break higher. HSI is the one that dragged us... a shooting star now lingers on the daily chart. I was away for a meeting.... otherwise i would have shorted HSI near closing... keke *Horse Back Canon" Another point that i considered was Dow had closed right on the 200DMA resistance last night. Usually, if it wants to clear resistance, it will just burst through.... Lastly, Nikkei after market, its futures retraced badly.. very ugly.. With the odds stacked against me... i think keep the profits better. I missed a bulk of the property rally... to be able to still latch on to banks and offshore, i think i shouldn't be tum sin. F puts it very well.... market will take the money back from you if you don't keep it properly. Furthermore, technically, profit targets already met.

I closed all my long positions today. Just do not feel comfortable with the afternoon sell off. Picture this, morning we float higher then we hit by heavy selling in the afternoon. It's a textbook warning. Futhermore, it will be very stupid of me to leave good profits on the table. Now that the profits is safe and warm in my pocket... psychologically, i feel so much better.. i think tonight i can sleep like a baby liao. I just checked, for the month of May i made abt 10% of trading account. So far only March i lost. Rest of the months are profitable... if i can maintain at a modest average of just 5% per month for the rest of the year, by December my account should be up 75% for the year 2009. Working hard towards it! The only fear i have is self sabotaging. Many times when i am up by more than 20%, i end up taking unneccessary risk and lose a substantial amount back to the stock market. This is a flaw in my trading i must be fully aware of. If i can stop losing money, i will make more money. Loon ah! Cannot be impatient ah! That's why i avoided shorting today. It is technically still an uptrend... uptrend i should buy low sell high.

Meanwhile, i am looking to buy back if thursday is resilient. The plus sign i saw from my screening showing it may be a natural retracement in a intra-week pull back. If support holds on Thursday, we may close higher on Friday. Once again, Thursday will be key to me.

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