Market View 24 October 2011

Wall Street rallied last Friday as the market was
anticipating that Europe will come up with a
comprehensive plan to deal with its debt problems.
Strong healthy corporate results also added
strength to the surge, with Dow up more than 2%.
It has been this case for the last couple of months
with sudden spikes coming in a few days of
inactivity then followed by a equally strong pullback
only some days later. I can only say to be very
cautious of such a spikes. Our local market will
also open up this morning but I don't expect a
equally closing figure.

The main attraction in last Friday trading is definitely
none-other-than the STX OSV. It plunged hard to
close at 1.02 with a high volume as well. I am not
going to repeat what the newspaper have already
reported, anyway, that is their side of the story.
Before the sudden plunge, I have already stated that
the stock is going to have a retracement very soon
and it is likely between the scale of 10-15%.
True to what I mentioned, it have pullback exactly
15% from the high of 1.195 to close at 1.02

Regardless of whatsoever reason, it will still open
higher in accordingly to the rest of the market and
the critical recent low of 1.02 must be seriously
watched. I know of readers who bought the stock
at about 1.02-04 region as an investment and not
to intra or contra trading the stock. The fundamental
of the stock did not change at all and I believe it
will be constantly valued by the market players
again and again.

Enter any position with a Cut-loss level & Trailing Stop,
and Please practice strict Money(Risk)-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 

别人笑我太疯颠，我笑别人看不穿