Market View 10 November 2010

"Wall Street fell for a second day on Tuesday
as selling accelerated into the close, led by sharp
losses in bank and metal stocks."
Dow dropped 60 points, S&P 500 fell 10 points
and Nasdaq lost 17 points.


STI continued to surge higher despite falls in
regional market and it will be a challenge for
it to record further gain although it is at a 
52-week high. Although the index is surging,
not all the stocks are enjoying the succulent fruits.
I received emails from readers asking me why the
stocks that they bought did not move while other
stocks move wildly. This is a very common 
occurrence and have been discussed a few times.

If you are in a fair-unknown penny, then you
really need to wait for someone to uncover and 
discover its potential before it has the chance to sparkle.
For myself, I stick to stocks that I know will surely
have liquidity and volatility everyday, by hood or by crook.
I also participate in rotational interest play like the
recent palm plantation stocks surge, and the returns
are rewarding. The O&M sector look very likely 
the next in play and other potential sector like 
the Techs and Water are in the pipeline too.

Some readers asked whether the plantation stocks
rally is over. From what I see from the chart, it is
definitely not over but the reward/risk level is
getting lower. It has been a 20-40% price surge by 
some counters and profit-taking is always 
likely be such a circumstance as I also
perform the same way. Golden will face resistance
at the recent high 78cts and 81cts and support 
at 74cts. First Resources will first face 1.46 resistance
then 1.51 if the momentum continues. The remaining
2 small-cap Kencana and Global Palm will really
depending on what their bigger peer is performing,
although I noticed exceptional higher volume in
Global Palm last few days.

If you notice that I have not been commenting about
Genting lately, then you are absolutely right. I have not
trade this counter recently as the rewards is not that
impressive anymore. In any correction, this counter will
be the leader leading all the falls.It may surge higher
despite all the risks but I prefer to shift the focus to 
other potential and rewarding stocks.

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