Market View 13 August 2009

Uncle Sam rallied on Wednesday as Federal
Reserve believed that the recession
appears to be ending. The Fed lefts interest
rates unchanged and commented that "economic
conditions are likely to warrant exceptionally
low levels of the federal funds rate for an
extended period." The Fed are also hopeful of
the a more stabilising economy and said that
"economic activity is leveling out" The only
thing worth taking note however is that the indices
did not close at day-high, and shares lost steam in
the last half-hour of trading.

Back to our local shore...
Stocks and STI were down, and that is a
welcome scene, at least to me. Most Hot stocks
were down, except for a few. Yesterday, I specifically
mentioned IndoAgri and First Resources as a better
trading stocks than Golden Agri, and First Resources
is just a stone-throw away from the $1 mark.
Guess what? This 2 stocks rallied up, and you will
profited at least 5 cts if you traded the stocks.
First Resources is not above $1, and IndoAgri is
about 20cts away from another resistance level, $2.
Keep your trading focus with this 2 stocks, together
with a couple stocks looking to pass the $1,
Genting at 89.5cts, Swiber at 95.5cts, YZJ at 99cts.

I received a few emails and Skype messages from readers
that the price for some stocks is far exceeding its
intrinsic value, and way pass its NAV, and they
look "expensive". It is the same old view again.
If I look at some stocks purely on a FA prospective,
yes, they are "expensive" and should not be at
current price, but that is exactly what market is.
Market is irrational most of the time, and stocks
will be pushed to unrealistic level, either too low
or too high, before market price discovery will take place.

To me, it is all parts and parcel of how the game is
being played, you just have to accept,enjoy and embrace
the rules. I mainly trade on momentum and trends, so if
it is still going my view, I will gladly ride it up,
until the south wind arrives. But no worries, there
will be other stocks just starting up and gaining
accleration, so I just hop on the next surging train.
This should be how the stock trading should work.
I don't fall in love with a stock, and you shouldn't too.
I follow the stock winners, and ride piggyback onto them
until they are tired, and you jump on top of other winners.

Trade those still Hot (Green) stocks but be cautious
of south wind. Follow the Flow, but expect the Unexpected.
I will be cautiously 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.
In close watch: Epure & Falcon Energy, Rotary, First Resources,
Mermaid, Hi-P, PEC.


Enter any position with a Cut-loss level & 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