Friday, April 20, 2007


Haha, market rebounded!

STI sitting on uptrend line. Immediate resistance at 3375 need to be overcomed, then subsequently, the new high at around 3450 needs to be broken in order to reverse the downtrend. We could be in triangle formation, with STI bouncing in between the upper and lower trendline. This just means more volatile trading sessions next few weeks until we find a direction.

Based on today's high volume rebound, I think underlying trend is still very bullish. There are a few factors to be careful of. Firstly, when earning seasons stops for both US and singapore, there'll be no more good news to propel us forward. Usually may is a bad time for stocks. Next, is the golden week (1 week break) for china and japan. So, we might be seeing low market volumes at the last week of april. Best to stay on the sidelines or do quickies.

All the stocks that i sold yesterday came back today. Oh bumber, what to do? I don't regret because that is still the right thing to do. Cut loss when things don't look right. I always hear people saying hold long term for stocks. But I never hear the second part - hold long term for fundamentally sound stocks. Not all stocks are meant for long term. I sold all my speculative ones (i bought on contra and haven't paid) to close off all my open positions.

Nowadays I think i'll just focus on medium to long term. By that, I mean at least 2 months to a year. Different mindset huh? Speculative stocks (less than 1 week holding period to 2 weeks) I'll minimise. Basically I'm changing my profit because I realise money is made by doing it slow and steady way. Fast and furious money comes and go off. Investing is a philosophy, haha

I'm going to revamp my portfolio soon. I'm going to break down my holding stocks to longterm (>1 yr), medium term (3-6 mth), short term (1 mth) and speculative (<2 weeks). Of course the proportion of my capital will be in that order too. I'll release more details when I get it done. Probably i'll exercise position sizing to restrict my risks with regards to my total portfolio.

Dow +112 now. Europe all green. What a difference a day makes, haha!

Have a great weekend!