Tossing and flipping on the bed... the night was really uncomfortable... i staggered out of bed to check out the bathroom... took a glance on the clock.. 5:11am! Wah not enough sleep again.. as i age, i notice i am waking up way too early as if i don't need longer hours for sleep. I checked Dow and to my horror.. +185 pts up... I lie back on the bed and couldn't help imagine the worst case scenario of my stocks. There is not way I can fall back to sleep anymore. Stupid treacherous market. Even if you turn back the time, i would still think Asia was already there, broken and ready to nose dive to the south.....alas Ms Whitney had to upgrade Goldman on this night. Totally reverses the bearish sentiment.
Much to my surprise... the market did gap up but i came out just slightly worse off. Look around... most stocks did not break previous high? most stocks end the day with black candles? Those supports and resistances that i am eyeing are still intact? What about my positions? Out of 3 shorts, 1 remains profitable while the other 2 are under water but only slightly. Contary to what you read in the shoutbox above, i did not go long. Though i am tempted to! I fancy a long hedge against my short positions. However upon closer look, we are too near to resistance for the hedge to be any effective. Thus, i am eyeing those resistance level to hold. For all i need is a piece of bad news to trigger a landslide in this thinly traded market. I know i am wrong in my analysis if the market trades above 20dma convincingly and 50dma is well supported. This must happen to broadbase market for me to change my view. Another perspective which i did consider over the weekend is, the weekly chart is actually painting a bullish picture. However, in my opinion, i feel that the market may trade lower and there is one particular level which i am eyeing for the "low" of this downtrend before another upward trend develops. We were so close to getting there on Monday, nevermind, patience! What if i miss? At most i buy at a higher price knowing that the market is going to head higher anyway.
The reasons why i am hanging to my shorts:
1. Stops not triggered
2. Volume on the rebound is weak. Most of the stocks failed to exhibit confidence to trade higher. Infact many stumbled at the resistance
3. Dow is right at the resistance on the daily chart. Awaits how Dow trades at current level.
4. Goldman's result maybe priced in the run-up yesterday and today may sucuumb to profit taking. I am betting this profit taking to snowball into an avalanche
5. There's a bradley turn date nearby this week.
Add to my shorts? Surely yes if we have a sudden massive sell-off. Infact if you could understand my mandarin post last night, i was all prepared to hoot tua tua today if support cracks. Haiz... it did not happen... guess i have to wait again.
Lastly, if you are one of those waiting to catch me tell a lie in the blog, sorry to disappoint you. All you can find is my integrity and honesty. I see no reason to brag about my profits or hide my losses here. Look around, how many are there that allow readers to post comment? Put a shoutbox? Knowing fully that i will be criticised by critics or subject to targeted insinuations, my blog is still kept open for comments. The truth is, I am not ashame when i lose a trade. I will be kidding myself if i portray an image of invicibility in the stock market. There is no such thing. It is how i manage my winning trades and my losing trades that counts. Trading is a mind game where you pit against your psychological makeup. If i am so conscious about what people think of me, i am only introducing another obstacle in my trading. I remember someone asked me, since i am already trading full time and running a business, why do i still keep a blog. Well, this is me. If this is one way i can contribute back to the investment community, i will continue to update this blog until the day i am no longer wanted. I feel happy if i can brighten up someone's day through this blog. ： ）
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.
