Market View 22 May 2012

US stocks rebounded in overnight trade with
all the 3 major indexes reporting good surge.
Nasdaq even gained about 2.5% due to good
performance by Apple.

Ok, I will be going for a holiday tomorrow and I
will be back to writing Market View on 4th June.
Recently, I received a handful of emails and Skype
message on whether my travel jinx will still be valid?
If you have just started on reading this blog, then you
may not know that on many occasions when I am
taking a holiday break, the stock market tends to
be weaker during this period. I never realise this
situation until a few readers informed me of their
"finding" and "observation". Seriously, I don't know
whether I am still a travel jinx to the market, but
given the volatility and sentiment that we are in
right now, anything is possible. I will not rule out
further weakness in the market but this should be
good news to the serious investor, as all the stocks
will be battered regardless of their fundamental standing,
and it is GSS, Great Stock Sales!!!

Many stocks rebounded from low last Friday and
I am asked whether they will go up from now.
Basically, this is what the market is likely to behave
from now. Take note of the day-low last Friday and
if that is not breech in 3 days, it is likely that an interim
bottom have been found. Next, is to see how high it
will go before it stumble and fall back down, then that
is the interim high. I will use China Minzhong as a example.
Last Friday, its day-low was 55cts and this level is not
taken out today, it will be an interim low formed.
I believe it will meet strong resistance around the 65cts
level, and let's assume that is the interim top formed.
It will likely range-bound trade within this 10cts region
until either side is broken, and we will have to see where
the next support or resistance will be.

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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