Properties actually looked quite firm yesterday as they did not crash through the key support levels. But the news abt tax on capital gains spooked the market. Ok, i am not short on properties and thus didn't benefit. But the cake sim part is when u see the rest of the market falls like a rock and ur stock goes up! DBS! I had great plan on how to make big bucks trading DBS. Waiting to hoot at the breakout and then cover back only to short again at the re-test. I covered DBS near closing because i didn't like the high volume and the resiliency it shows in a falling market. This is confirmed with the other two banks which also closed higher off the support. Now i have to devise another plan to benefit from this falling market. Which i did so in the afternoon.
I went short S&P futures with an opinion that the head & shoulder patterns i saw all over the place is going to drag the global markets lower. I see more downside than up even if there is a rebound, i suspect the rebound will be weak. Look at STI, held up by invisible hands... despite Nikkei and HSI fell badly. This pretence cannot sustain surely. Hence my bet is on US markets to lead the downfall. I won't know exactly when, but i know i am wrong if those heads and shoulders are violated. I will also be keen to watch for weak rebound to initiative more shorts.
Currently i am still short on one local stock and S&P futures. I asked myself, do i want to hoot tua tua at this time? What are my probabilities? I have to admit, it will be silly of me to hoot right here. This is not the time to be agressive. I prefer to wait patiently at the next rebound. That is where the risk/reward is the highest! What i done today is to keep my good profits in DBS and then use this profit to risk a S&P short. If i am right, then i make more money. If i am wrong, at most i lose back some profits. I am increasing my profit potential here with low risk. On the other hand, if i hang on to my DBS shorts, and then still short S&P, then when i am wrong, my profits may potentially be wipe out by the new short in S&P. The reward, certainly more profits if i am right. The above two scenarios are my considerations this afternoon and i choose to make more profits with smaller risk.
Remember, it is a sin to lose all ur profits back to the market.
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