Wednesday, March 21, 2007

Reflection for today

I didn't post for the couple of days because I'm too busy. Haven't been trading anything because of the situation we have over here.

Looking at STI, it shows quite a number of conflicting signals - signs that markets are not sure of where to go. STI exhibit a symmetrical triangle, which by itself is not bearish nor bullish - it depends on where STI breaks out, is it on the upside or downside. Today, it seems like STI had broken out of that triangle and is touching the resistance level at 3150.

To me, that level is important as I've covered earlier in my postings - it's both a covering of the gap as well as the support and resistance level of recent highs/lows, which makes it significant. To break this resistance would signal to me that STI have turned bullish, till then, I can only assume that STI is bearish as of the last charting.

Stochastics seems to be range bound, neither going up nor down. RSI touching resistance level at 54. Again, a breakout of this level would signify change in trend. MACD black line touching red line - I've learnt through the hard way that it's better to wait till it truly cuts it to conclude anything. Volume is worrying as it's steadily decreasing as STI recovers, certainly not a good sign. I guess all depends on US side now, with the FED meeting on going for 2 days. Might hear something from Ben to smooth the market, who knows? Maybe inflation is getting serious (it is GETTING serious), so might hint on postponing rate hike.

Seriously, I don't admire his job. Raise rates - economic goes into recession quicker as everything is quite bad. Lower rates - inflation becomes worse, economic also goes into recession. Most likely he will do doing and wait for more information.

Today made some quickie on HSI puts. $70 in 1 hour, not too bad lah. This is actually a bad move though, on hindsight. I risked too much to get too little returns. I shouldn't have bought anything today, it's just too risky. It's a good thing (and fortunate thing too) to have sold at intraday's high before the HSI surged up after lunch. DAMN LUCKY...

Longcheer rallied up 11%. Don't know what happened. At high volume somemore..hmm...

PacAndes on trading halt, pending announcement on major transaction. Don't know what is this, I hope it's good news though. Good fundamental stock which I've kept since I first started trading.

Dow is now +5, let's see how it fares later.

I have a sinking feeling I have to cut my puts for STI tmr.