Market View 18 August 2009

As expected, Uncle Sam's major 3 indices
fell sharply, as Dow recorded the worst
losses in the last 6 weeks. What is the
reason behind the selloff? If you like
political-correct answer, then it is the
worries for the consumer spending in the US,
the economy......

It was a pool of red for the STI and the
Hot stocks, as we pre-fall ahead of the
expected US selloff. This is a "genuine"
selloff as most Hot stocks closed at or within
a few bids of the day-low, and some stocks
even closed 7-9% down for the day. I specifically
state to be aware of a stormy weather this week,
and indeed we have it on the 1st day of the week.
I believe that the readers will be stop-out yesterday
if you are using trailing stops. It is Ok as you
should still have pretty decent profits for
last week's surges. For those who are still
holding to losers, then you really have to
pray more since you don't want to cut losses.

What do we expect to see in today's trading?
I believe we may see "green shoots" today, but
I will be cautious to trade them, as I need to
see a mini trend arising first, if you know what
I mean. Like what I told a reader at Skype yesterday,
it is the sitting tight that makes money, and not
my beliefs. Nevertheless, I will be particularly
focusing on the commodities stocks and the oil-related
stocks, as I believe they will be the leader if
there is any recovery today and beyond.
Not to forget those stocks heading toward the $1 mark.
You can simply choose to sit-out today if you
are uncomfortable to trade any stocks today.
Observe the stock action, and have a feel of the wind
direction, taste the wind for any wind reversal.

Trade those still Hot (Green) stocks but be very 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, CSE Global.


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


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Afternoon Mid-day Review

It has been an interesting trading day.
There are multiple trading opportunities
but I am only in small positions.
If you are wondering why Straits Asia surged
so high up, there are a few "reasons".
It announced that it has formally completed a
process for rezoning land use across South Kalimantan
with the Indonesian government. If you are looking
for a more "juicy" reason, ML initial coverage
on Straits Asia today with a Buy rating and $2.80 price
target. Macquarie also raised its target for Strait Asia
to $3 in its research report.

I am only looking for quick and swift profits
today on the commodities and oil stocks,
and will clear-out positions if the south wind
blow, and my stops got triggered.
I am not looking at a rosy afternoon trading
session, so the odds are, the selling will continues.

See you later...