Market View 9 November 2010

"Wall Street retreated from a two-year high
on Monday, weighed down by financial stocks
and a stronger dollar." Dow lost 37 points,
S&P 500 lost 3 points while Nasdaq advanced
1 point.

STI surged high yesterday with the index closed
at 3300.40 up 60 points. I expect a catch-up from
the index after missing out on last Thursday and
Friday's rally from regional market, but the scale
of the rally still quite surprised me.
Anyway, putting the index aside, if you expect that
the pennies and mid-caps will all follow the STI
in the surge, then you are wrong.

I mentioned that only selected stocks will have
a run-up and indeed that was the case. The plantation
stocks ran wild, and we have Golden Agri at 78cts
up 8cts, First Resources gained 6cts, and even the
much smaller caps of Kencana and Global Palm also
enjoy the bits-and-pieces of the surge. Will they continue
to reap reward for their followers? Golden Agri will
face strong resistance at 81cts and will have support
at 74cts. First Resources will be capped at $1.45
and supported at $1.39 The remaining 2 small-caps
will follow their big brother up and down.

After a strong surge yesterday, it is looking like we
will have a decent consolidation today or this week
to flush out the weaker players and holders.
Expect profit-taking to surface and be prepared to
take profits along the way. In my previous blog entries,
I expect Golden Agri to hit my target of 74cts when it
was still in the 60s, and I took partial profits at that
price while saving the rest to see how high it can go.
It had been a good ride for me with Golden Agri
and the rest of the plantation stocks, but profit-taking
will only justify the real purpose of stock trading.



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

P.S.: I received numerous emails and skype message on having
a conference group on Skype so that we can have a group
chat together. I am having a poll for this proposal to see the
responses from the readers then decide on the outcome.