The Art Of Growing Money: Within a stone throw away from record high

Wednesday, November 01, 2006

Within a stone throw away from record high

I tried to go short on Nikkei and failed on Tuesday. Bought at 0.255 and sold at 0.240 on Wednesday. The rebound in nikkei was weak and it went soft after briefly crossing into positively. Recognising the weakness and my eyes on Nikkei breaking the 16,200s support, i bought the PW. Tuesday ended with my PW slightly in the red. Wednesday opened perfectly with Nikkei down by 100 points, but things were different after 1 hour of trading and once again i saw Nikkei trickling upwards. After deliberating for a few minutes, I decided to cut loss on my Nikkei short. The logic is simple, human are driven by fear and greed in the market. If Nikkei is really bearish, the selling would have feed on itself with many people dumping due to fear. However that was not seen and it serves as a warning to me.

Current Holdings:
ChinaDairy @ 0.560
MediaRing @ 0.360
SembKim @ 0.655
CoscoCorp @ 1.31
TatHong @ 1.17

Midas is a stock i will be looking at. Breakout of $1 with volume caught on my stock screener.

We had a flush on last Friday and Monday. Last 2 days of actions showed that buyers are still willing to step into the market. Gosh! Why the bullishness? We easily closed the gap down on Monday. This gap should now act as a support level for any pullback. Or should we go down tomorrow, this gap will be a resistance. Property sprung to life. This is 3 days after I took profit on my Capitaland. Damn!!! haha Overall, we are seeing buying accross the board which shows strength.

Dow Jones could be supported at the highs because of the elections next tuesday. Can you believe it?? At the point of writting, Dowjones is up 40 points! Another good run tomorrow? I'm just glad I still have stocks in hand and has stayed clear of my shorts. Cheers!