Market View 5 January 2011

Wall Street closed mixed on the 2nd trading day of
the New Year as "Commodity prices fell sharply on
Tuesday as investors took advantage of record high
prices to take profits, a move accelerated by a rally
in the U.S. dollar. Wall Street also pulled back after a
strong December boosted equities to two-year highs,
with consumer and energy stocks weaker."
Dow up 20 points, S&P 500 lost 2 points and
Nasdaq dropped 10 points.

The pennies and mid-cap succumbed to profit-taking
yesterday as many were in red at the closing bell.
This is perfectly normal and healthy selling in my
view. I mentioned in blog yesterday that one should have
a trailing stop when trading stocks to protect against
losses and to preserve profits. I am still reasonably
bullish about the current market and expect the buying
to be back very soon.

Genting as expected hit the 2.25 resistance with force and
retreated to close at 2.23 Expect it to re-rest and re-test
the level again and eventually breaking it in due time.
Why am I so bullish about Genting? Because I believe that
history will repeat itself like what happened last year at this
stage. Anyway, the next resistance is at 2.32

The palm oil counters also took a break yesterday but I expect
them to be back in favour again. The resistance and support
level were given in previous blog postings.

Some readers asked me about those "cheaper alternatives" in
the blog yesterday which included stocks like SinoGrandness
& Sinotel... These are the stocks that I feel that will have trading
liquidity and volatility, ie, will have movement and "backing"
for it to move up. The list is not exhaustive but these are some
of the apple of the Mr Market's eye.

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