Market View 1 July 2009

Ok, Uncle Sam slided down with 3 major index
closing in the red on the last day of Q2.
If you read the news, "they" will tell you it is due
to worse-than-expected consumer confidence reading.
Ya, I "believe" you.
If you ask me, it is just profit-taking, and the consumer
confidence reading just provided a good fundamental
reason for the sell-off.

Our local STI still managed to close in the green yesterday,
but I can't say the same for the other stocks.
If you have read my blog yesterday, I said "On this last day
of June, we just may doa good last-minute STI dress-up party.
I can't say the same for the Hot stocks, they should be under
pressure, and will not be moving as strong as the index stocks."
My view turned out to be exactly what happened yesterday,
and the readers should have taken the money out before
the selldown began.

STI has rebounded about 60% from March's lowest point,
and if you have been putting money into the stocks for
investment purpose, you are sitting on the respectable
profit now. But if you have been putting money into the
Hot stocks that I kept mentioning, you should have
"indecent" profits of well over 100%, with big winners
in stocks like Olam, Yanlord, Noble, Straits Asia, even
Cosco and Ezra.

Now that we are in the 2nd half of the year, what can we
expect from this next 6 month of trading?
I see volatile but lucrative trading ahead, and we should see
some stocks got push pass the $1, and they are Midas, Swiber,
YangZiJiang, with the dark horse like Genting, Ezion & Ascendas India
Trust. Can they achieve it in 6 months? We shall see...I believe they can.
The rest of the Hot stocks may see a correction of 5-15% along the
way, but it is much-needed and welcomed by me, as they
will once again be the focus once it has dropped to critical support
level. I will be opening both hand to embrace them again.
If you want to ask me about the Property stocks, stick to those
that is not yet $1, and within the 80cts-$1, my favourite range.
I don't like them fundamentally now, but a couple of them
will still be push ahead of any clear fundamental signal is out.

We should have the Q2 corporate result announcements soon,
and I hope to see major surprises, whether it is on the upside
or downside, but with bias on the downside. It is with this type
of surprises that major trading opportunities arise, and
the market need them now. I hope to see more "worse-than-expected",
"better-than-expected", "negative", "positive" appearing
in the result announcement reporting, and lesser "within expectation",
"on par". Give me all the major (negative, worse) surprises!!

Ok, for today trading, stocks will open on the downside, and
will continue to slide until hitting a support level. I certainly
don't foresee them closing at the low. Keep a watchful of the
major market leaders, and they should provide a clue to
how our market will end the day.
I am still quite bullish on the commodities stocks, and will
watch for them today.

Trade those still Hot (Green) stocks but be cautious
of south wind.
Follow the Flow, but expect the Unexpected.
I will be trading today on the still-hot stocks.
Concentrate on the GREEN (If Available, but prepared)
Hot stocks: Straits Asia, Midas, Olam, Ezra, Ezion, KS Tech,
Cosco,YZJ, Indo Agri, Noble, NOL, Genting, Ascendas India Trust,
Yanlord & Uniasia, Raffles Edu,Swiber, Swissco.

Enter any position with 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