Tuesday, January 16, 2007

Good and bad trades today

No charts today.

Did some good and bad trades. Bad trades because it's something that is not planned for. Sigh..greed greed..

Firstly, bought some put warrants for hsi around 1130am, when the market is near high. Don't know why I got the gut feeling to trade puts even when it's climbing. I must be really sieow. Anyway, it turned out well. I basically sold it because I need to go off and I'm sick of staring at the price all day. Bought small small, 5 lots at 0.225 and 5 lots at 0.220, so average down buy price is 0.2225, total 10 lots. It's small because my usual vol for warrants is at least 20, sometimes, 30 to 40 lots.

Anyway, sold when I had to go off, at 0.235, making a profit of 0.015. That's around $70 in profit only, not a big deal to cheer about. I treat it as a training ground for my on-the-spot technical reading of charts. If only the internet connection is more stable, i'll have bought and sold multiple times like in the past. But after taiwan's earthquake, internet connection became unreliable. Sometimes crawling. Too risky to do this kind of intra day swing trading.

What's the bad trade? I bought fabchem again. Mainly because I read the annoucement that dyna from US is going to acquire close to 30% of fabchem at 0.70. Since the price is trading at 0.645 before the announcement, I guess that it might gap up, so I went to buy at 0.675, 5 lots. Who knows it literally fell off whatever support it has (it was so weak that i can't even detect the support!) and dropped to 6.45 now. Come to think of it, it might be closing the intra-day gap before tmr can cheong further. Haha, optimistic way of looking.

If it drops more, I won't hesitate to cut loss again. Let's put the cut loss at 0.62 then, based on a rather significant mid-term support. Extremely unwise move by me today. I'm risking 330 for a 68 dollar gain. What am I thinking of? Too late to remedy, i'll watch fabchem carefully, no way is this stock going to drag my portfolio down again like last time.

Longcheer seems strong, selling till 1.24 on light volume. I am beginning to think that ema20 is the moving support line for longcheer, having bounced off it several times in the past. It is very very near ema20 now, so I hope tmr it can bounce off it again to greater heights.

Ellipsiz, some weakness detected. Spent half the day around 0.78/0.78, which is close to my cut loss of 0.78. If it closes at 0.78, I'll cut next day already, so luckily I don't have to do it. Selling was done at average volume, might be a cause for worry. I'll be monitoring this stock closely tmr too. It had better clear off 0.79 support turned resistance line with convincing volume. Otherwise, another candidate for cut loss.

Tmr all depends on how dow and nasdaq behaves. Futures for dow is +24, but i learnt that it can quickly turn nasty. HSI is directionless now, needs input from dow to move either up or down. Initially wanted to keep my puts, but thinking again, I better not hold overnight positions for warrants. HSI is so volatile nowadays. My feeling is that hsi open positive but close negative to touch the ema support line. Then we'll see if it can rebound again to test resistance at 20,200 and 20,400. Today didn't even come close to resistance at all, just hovering up and down 20,000. As a result, most of call and put warrants are down in price, because nobody knows what to expect. With earnings seasons in US, we could see a positive dow performance tonight, perhaps that might start off a chinese new year rally that all has been waiting eagerly for.