Market View 20 January 2011

Wall Street suffered its worst drop in 2 months as
"The S&P 500 suffered its biggest decline in nearly
two months on Wednesday as disappointing results
from Goldman Sachs and Wells Fargo put a damper
on the rally. The Nasdaq fell more than 1 percent,
its biggest daily percentage loss since November 16,
as more disappointment in earnings came from chipmaker
Cree Inc. Its stock tumbled 14.5 percent to $53.63."
Dow fell 13 points, S&P 500 dropped 13 points and
Nasdaq lost 40 points.

Yesterday's market actions were concentrated in just
a couple of stocks with Genting surging to 2.22 but
closed at 2.19 Some readers told me that they are
already parked in this stock in anticipation of the
CNY rally and the amount of money that will be spent
in the casino during the CNY period. I have to tell
them that this looks like a risk-justified trade but one
still need to have a cut-loss level should anything
drastic happened to the stock regardless how low
the chances will be.

Looking at the palm oil stocks react yesterday, I can
only say that they are on the buying form again.
Golden Agri need to break the 78cts resistance to
have another shot at the 80s which I believe will
be done. First Resources is back in the 1.60s and
will have good support at the 1.57 level with upside
initial target at 1.65 Some readers always want to buy
the laggard like Global Palm and Kencana but they
will only move when their bigger brother lead the way.

There is a stock that I particularly like from what I see
from its stock chart and it is Dukang. For those who has
access to its chart, I see that it will be breaking the
52-week and historical high of 93.5cts and how high it
will go is anyone's guess, but I believe the profit will
be very rewarding.

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