Market View 3 March 2009

What a bloodbath we have yesterday which
many stocks, the banks, pennies, also
the Hot stocks that I am so used to trade,
all tumbled down.

I received an email asking why I only
recommend buy, but not shorting when
it is a confimed "red-letter" day like
yesterday. There are several reasons in
my still-buy recommendations.

Firstly, it is confirmed that the market will
fall yesterday, but it is also almost confirmed
that it will gap-down. If you look at yesterday
market action, most Hot stocks opened gap-down
and there are not much meat for you to earn
for most of the trading until the last 30 mins
to closing when the selling intensified.

If you shorted using normal brokerage account,
you most likely will covered them before 4.30pm,
and you may even suffered brokerage commission
losses on some stocks. If you shorted and never
cover back yesterday, then you are doing
a naked short, which means that now you need
to pray very hard, that the market will continue its
slide all the way to T+4 when our Big Brother SGX
will buy-in for you.
If you shorted using CFD, then you are safe, but I
still will not recommend shorting now.

Yesterday I mentioned that there will be some
"green lively leaves popping up later" which did not
realised, so if that is the case, then simply stay out
of the market and don't do any rush action,
unless you are buying on dip to invest in stocks
for a longer period.
We trade to win, not trade to trade.
If you have any other target other than making
money in the stock market, then the God must
really blessed you more.

I believed that our market already "pre-dropped"
in view of yesterday Uncle Sam's selldown, so our
market will likely will more resilient today.
I am still looking at green leaves to pop-up
today in the same Hot stocks that I mentioned
yesterday. Since Noble is at the critical $1 level
again, I will be very particularly focus on it.

I believe the current selldown is a good sign that
the end will finally arrived, and we can be
better-off in the 2nd half of the year. We simply need
such a selloff to trigger a recovery when the
price and index is simply too attractive to ignore.
This is purely my personal view which may or not
materialised, but I just have that tingling feeling that
it will.

As usual, enter a position will a trailing stop,
and Please practice strict money-management.
If you don't like what you see in the market,
simply don't trade.

If you have Skype, and would like to chat with me
about stocks and all others,you can ring me at
my email address: stocklobang@yahoo.com
I have currently a couple of members skyping with me
everyday,and they are having good trading results.

As usual,
Stay Alert but be Aggressive too.
Audentes Fortuna Juvat !!

市场生存座右铭: 风林火山