Fantastic run up from dow last night, with a rally of 319 points (2.46%), NASDAQ 89 points (3.46%). Oil is slipping back slowly, now at a price of around $91 per barrel. Does this means we are back in business? Hard to say, but in my opinion, it still requires the consolidation period. The market doesn't do a sharp u-turn and surge all the way up non stop. As I mentioned before, it has to consolidate its base within a channel and start move upwards.
With YEN/USD trading at 110.87-110.92 + 0.78, it is still not inducing me to open a position yet. As for asian markets, it was expected to open nicely with the gapping up of dow, with STI opening with 1+%, same goes to nikkei and hang seng opening with 900+ points! Now, it is nice to see stocks or markets opening at very high increase, but one thing to take note is, when there is a huge gap up, take caution as it is normal that there is a gap down the next day. It is important to cover that huge gap, and the bigger the gap, the larger the covering or the longer it takes (slowly dropping or fast dropping).
One counter to take note is YZJ, where it has probably surge 22cents for the past 3 days! You can say that this counter is still undervalue, and I see that the potential for this shipping company is very high, but in this irrational market, it doesn't justify the surging literally everyday!
If my model goes well, the US market for tonight may be a very small increase or decrease or a flat, unless some big news comes out.
As of now, celestial has taken a rise of 6cents which is close to my model's prediction of 10cents. It seems to be that the stocks are starting to slow down its pace.
Next, I'm going to learn some more new stuffs, which are more in fundamental analysis as compared to technical analysis. Going mid term is more fruitful as returns are higher and considered lesser risk as well. Another skill that I got to learn is the way to short the market. This is very important to have so that you can earn both ways being in a bull or bear market. Considering the fact that it rises 10 cents and drops 30 cents everytime, which can make more money? But shorting has a very big risk, which leave you in a very open position which you can't cover back. You can only buy back the shares immediately and incur the loss straight! As far as my account goes, they only gave me T + 3, and my broker recommended me to open a CFD account which allows a 1 month period. But once again, shorting is for very experienced investors and definitely not for the faint hearted.
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