Market View 28 October 2010

Wall Street was in red in overnight trade
as "U.S. stocks fell on Wednesday as investors
dialed back expectations of how aggressively
the Fed would act to stimulate the economy.
With the uncertain outcomes of the U.S. elections
and a Fed meeting next week, traders positioned
themselves for more volatile markets."
Dow recovered 105 points from day-low to close
down 43 points. S&P 500 lost 3 points while
Nasdaq bucked the trend and closed up 6 points.
It is going to be bumpy and volatile trading sessions
all the way to next week.

I told quite a number of readers over Skype recently
that if something bad is going to happen to the
market, it is surely going to be this last few of October.
Yesterday afternoon, when I saw that the US futures
was deeply in the red and together with blood flowing
out from our market as seen in my watchlist, I was
thinking THIS should be the day. Somehow, US indexes
is still showing resilience and a U-shape rebound if you
are looking at the intra-day chart.

It is likely that our market will open weaker today
and further upside and downside will be limited
be tight ranges if my view is correct. I am taking
this opportunity to see how the stocks will react
as they approach important support level.
Genting fell hard yesterday and further upside will
be tested at 2.18 initially and 2.24 as a good resistance.
It should be supported at 2.10 with downside tested
at 2.04 As much as I hope to see Genting below
$2 again, it is not going to be a "easy and smooth" fall.

MIT stands strong during the thunderstorm yesterday
and I do like to see such a stock in action and I
will watch closely on it. Frankly, the plantation stocks
also performed reasonably and maybe staging a comeback.
I have been trading cautiously lately with smaller trade
size and strict cut-loss level and will continue to do so
until I see that the risk-reward ratio is more favourable.

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.
See their comments here:
http://stocklobang.blogspot.com/feeds/comments/default

As usual,
Stay Alert but be Aggressive too.
Audentes Fortuna Juvat !!

市场生存座右铭: 风林火山