Market View 7 December 2012

I just noticed that this will be my 900th blog post
and I am 100 posts away from the elusive but
imminent 1000th post mark. It should happen in
the next couple of months though. For the time
being, I just have to continue to provide good
quality daily write-up.

It seems that this days you can't help but see Olam
in the limelight for the unglamorous reason. After the
rights issue is out, the stock suffered heavier selling
and rest at the support level of 1.45-1.46 level as stated
in the blog yesterday. Some readers asked for my
view on the recent plunge. I have to say that it is more
of a confidence and belief issue on the company rather
than the financial status or the rights issue now.
I believe that the funds are shedding their interests in 
the company but at the same time, there are longer
term investors and funds picking up the broken pieces.
It is the usual tug-of-war between the supply and demand
side of the market forces, and currently the bears are
winning the battle. Do take note that the war is not over yet.

On my side, I bought Olam when it was in the 1.4x level
and when I saw that the selling is getting stronger, I started
to pare my holdings and contra to preserve profits.
Take note that you should NEVER NEVER NEVER let 
a winning stock become a loser. It will demoralise you with
a devastating effect and you will likely feel it for a long time.
I am still mid-term bullish on the stock and I will start buying
again at the current 1.4x level.

By the way, I have to say that the emails I received for 
the Mentor Group is very encouraging. Keep the emails
coming in.... 

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