Market View 25 October 2011

Most stock closed green yesterday but did
you notice that many of them also closed
at or near to the day-low rather than the
day-high? The trading volume were also
quite subdued in a way. Wall Street were up
again in overnight trade but I don't think it
will bring a great deal of strength and cheers
to the market. I believe it will be the same
case today as what happened, opened high
but ended weaker.

I received an email from a reader with questions
on STX OSV. It was sent together with a chart
but I will just publish the question in the blog
without the sender's name.

"Hi Mr stocklobang

I would need your advise on stx osv, notice that the 

previous pullback after it filled the gap of 0.8 it have a 

strong rebound, do you think this time the pullback will

fill the gap of 0.93 to 0.905 and it will be a good opportunity

to buy at 0.905?

Thanks a lot for your advise"

If you have been reading my blog lately, you will have

known that I expect a 10-15% pullback on stocks including

STX OSV from their recent high. STX OSV hit a high of

1.195 and retraced indeed 15% to a low of 1.02 and rebounded.

Never mind about all the "news" that came out but the

stock's fall did stop at the 15% mark. 

For the current situation, I definitely don't expect it to break

the 1.02 critical mark again. But if it really breached the mark

again, then it should be heading toward the next meaningful

support at 91cts. To put it very bluntly, it just cannot fall below

the 1.02 mark, if not it will triggered another down-slide. 

I know of readers who bought the stock at or near the 1.02

low last Friday, and some will be treating their trade as 

contra-trading while others will be putting money into the stock

as a mid-term investment. I believe it should consolidate around

the current price and will be moving up again but be cautious

of the stock erratic movement.

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 !!


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