Wednesday, July 22, 2009

Patience .... patience...

Haiyo... yesterday i slept early to watch the solar eclipse ma! :D Once in a life time leh!

Dow's 7-day winning streak really leaves one open mouth big big. By probabilities, the chance of going higher is lower without first experiencing a pull back. But pull back maybe shallow as what we seen in March. Without much negative news, i feel only normal retracement in an upward trend may happen as we go higher. The primary trend without a mistake is upwards for now.

Many are talking about possible double top as we head towards last highs. I would wait to see how market trades there before i initiate any short positions. There is a time to long at support, there is also a time where u shouldn't buy at support. Same goes for resistance. When i say wait to see how market trades there, i am refering to candlesticks patterns.

If i have positions, i would unload on the way up and prepare to buy back at lower levels. But since i only have 1 long position, i shall keep it. Hearsay duing my reservist the timing is from 7am to 11pm... sian half... however, i am thinking to keep a long position on one strong stock.. just one so that i can grow money while serving the country.

While i look for stocks to long, i notice many are too near resistance to offer any good risk reward. Thus, i think it is prudent to wait for attractive levels. Don't be surprise those levels can be reached during intra-day where we have those quick sell-offs to those levels then we close higher.. a pattern which is commonplace.

Like Livermore said, "There's a time to long, there's a time to short, there is also a time to stand aside" But while we stand aside, make sure we don't miss the next trade!

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.