Market View 28 May 2009

It is so interesting watching Uncle Sam blowing
hot and cold any other day. On one day, it was
up by 190 points, and the next it almost erased
all the gain and drop 170 points.
I like such a drastic and erratically irrational volatility
and movement from Uncle Sam. A pity that I
don't see such action being showed in our local
market, it is more predictable and expected,
and anomalises do exists, but they are also
explainable and can be tracked from the charts.


Some readers asked me that is it "normal" for a stock
to go up like 100%, even 500% in about 2 weeks of trading.
I can sense the "sourness" in asking such question from far,
and I believe that the readers must be watching the amazing
show from the sideline and itching to enter the stock,
but stopped as it is an "abnormal" occurance, or only
managed to earn a tiny profit from what can be eventual
gigantic gain.


It is perfectly "normal" for a stock to go up exponentially
or in a straight line when Greed is in the driving seat,
but like all all things, the momentum will run out,
the bubble will burst, and gravity will
take the stage, and we are likely to see a spectacular
sell-off and sell-down. That is when Fear takes over the
controlling power. If you like further reading, google
South Sea Bubble & Tulipmania, the 2 old-time bubble
stories.

There is no "normal" or "abnormal" stocks, but it is
the so-called "Invisibe Hand" behind the stock that
is pushing the stock. It may be fundamental news
being leaked-out, or rotational renew interest in
various sector, or just plainly speculative pump-and-dump
being carried by shrewd and well-informed players.
Their action will be reflected on the chart, and
if you are trained, you should be able to pick-up their
traces, and following the strong hand's play is all
but yet another trading method that works.
But (I know you may see this coming) in any
trades, have a cut-loss level, and then a trailing stop,
and just enjoy the surge of a few folds.
I believe many readers should be having well over
100% in investment gain, and maybe also trading profits
over the last 2 months of strong action.

As usual, most hot stocks should start the day on a low
note, but like what I always said, if you don't like it,
simply stay out, and watch the show from the sideline
but observe any green shoots growing from the pool of
reds, and that maybe the play for today.
In the last few same scenario that our market put up,
strong support will arise when the stocks have drop
or slide to an attractive level, and we will see snap-up
and grab-up take over. We just may have the same scenario
today. Observe and be Alert.

Follow the Flow, but expect the Unexpected.
Concentrate on the GREEN ( if available, but prepared)
Hot stocks:Ezra, KS Tech, Cosco, YZJ, Straits Asia,Indo Agri,
Noble, NOL, Olam, SembMarine, Yanlord & Uniasia, Raffles Edu,
Midas, Swiber, Swissco.

As usual, enter a position will a Trailing Stop,
and Please practice strict (Risk)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