Market View 3 July 2009

This morning, I woke up to a much-welcomed
red bloody closing from Uncle Sam. Major indices
all fell near to 3% due to "worse-than-expected"
job unemployment data since 1983. Like what I said
in my earlier postings, I like surprises, maybe not the
real-life type, but I certainly welcome financial market
surprises. I hope to see more of such "worse", "negative"
wording in the coming results reporting season.

Now that we have a surprise, and Uncle Sam is
certainly reacting normal to it, but will our
local market stage an abnormal reaction, and maybe
even closing in the green. It is always about how the market
react to a certain news, and never really about the news
itself. You can have so-called "bad" news, but green indices
and stocks, and vice versa, but do you know how to trade
in such circumstances?

Our market reversed early gains and closed in the red,
tracking an imminent bad trading day ahead in the US,
but the fall is definitely lower than the degree of fall in
the US. Yes, we will surely open in the red today, and
may even see a gap-down in a couple of stocks, but if you
ask me whether we will see a full-day drop, my answer
is a positively No.

Once again, I don't foresee stocks closing in day-low,
yes, we will fall, but will climb back up during
the day. It has been proven that whenever the Hot stocks
have dropped to a certain degree, supporting hand will
inevitably appeared, and sustain the fall. Will we see the same
thing again? I believe we will. They are still people out there
who believe that they have missed the early boat, and will
rush in when they see a market weakness and selloff, and
we also have the "insider" that will uphold the market to their
advantage in their portfolio positions. I certainly welcome
my view being proven wrong, and that will mean a
bloodbath today.

I certainly hope that my posting yesterday about a
bearish bias trading day, and stocks will be in the red,
have "saved" the readers from incurring losses if they
were to trade yesterday. I read from the blog comment
from a Skype trading friend, Sean, that he even take full
advantage of my posting, and made a 7cts profit shorting
Parkway Holdings down. What else can I say?
Good job, Sean!

Today's trading is very easy. Stay on the sideline and watch
the horror movie unfold. Very relax? No, you also need to watch
for green shoots popping up, and these are the stocks in focus
should you really want to trade today.
Trade those still Hot (if available 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