Market View 2 December 2011

A few Skype members asked me whether the
strong rally yesterday is just a 回光返照, and
we will be back to square one or even worst
within days or weeks. Ok, although I agree that
the measures taken by the Fed and the Central
Banks is not the holy grail to all the gloom and
doom that we are currently facing, it does lend
some optimism and confidence into the market
right now. I am prepared to be proven wrong but
until that happens, I stand by my view that we
should have a good 2 months ahead of us.
To those sceptics, they can continue to sit on
the fence and wait for the herd to be back before
jumping, which by then the fresh green grass have
already been eaten up.

There is a very simple method to see whether the
current rally will continue or will it falter away.
A real breakout means that the stock price will
continue to go up couple with increasing volume
to sustain the momentum. Many stocks gapped up
yesterday and a good guide is that if the stock price
fall through the base of the gap then it is not a good sign.

For those stocks that I mentioned yesterday, Genting
hit the 1.57 resistance and immediately reverse and
closed at 1.54 Just remember this price: 1.57
It is like the magical number for the stock and a breakout
of this level will be very bullish for the stock.
For STX OSV, the magical number will be 1.24
Noble will be 1.205

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 

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