Market View 20 February 2012

I received several emails over the weekend
asking when the stock market will finally
succumb to profit-taking and/or having a
correction. The "problem" with the market
right now is that there are too much Liquidity
in the market right now. With China's move
to loosen money supply bu cutting the amount
of cash the banks must hold as reserve by 0.5%
to 20.5%. there is going to be even more added
liquidity into the market. On a personal level, if
you sell off your stocks at a good profits now,
where will you put the money next? Chances
are that the seed money plus profits will flow
back into the stock market AGAIN but this
time it is pump into other different stocks.
This is the real scenario happening right now.

I got asked when will the market tank as the
readers did not or "participate" not much in the
current buying frenzy. In my view, the market is
very ripe for a significant pull-back but it seems
like the scenario is going to continue for some
time being any major selling will come.
I am going for a short one week holiday next
week starting from 27th February. I believe that
the readers can still recalled that I have a travel
jinx last year, as in when I am went for a holiday,
the market will take a breather or the profit-taking
will happen. I am not sure whether the jinx will
cross-over this year, but do take note of any reversal
selling next week.

Expect market to open brightly this morning but like
last Friday, I will turn cautious as the day proceed.
If you are not comfortable with the stock price now
then please don't rush in and chase up the stock.
You may just get stuck in or near a day-high opening.


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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