"All in all, as we observe that many counters are facing consolidation, it is safe to say that broad based correction is likely. "
Seems like I was spot on. While only a few had hit my EP, I've decided to clear my trading positions. I believe that macro conditions do play an important role, with the rocketing oil prices, China inflationary bubble waiting to burst, US inflation/subprime issues still lingering, it seems that at this point of time, if 3 of these issues were to pop, or bull run, if any, will be pushed back. At the moment, I'm neither bear nor bull, put I feel that safe guarding the capital is more important. No matter what, the market wont run away and there will always be opportunities to invest/trade. But without capital, or if capital is stuck, you can do nothing about it.
To me, there is a difference between broad based correction and dips in individual counters. With broad based correction, every good news will have little or no effect. It's like trying to go against the wave. For inidvidual dips, we look at the consolidation and surge of inidividual counters. At this moment, as the macro sentiment might change suddenly, the TA for individual stocks have to be cast aside.
Right now, the more sensible thing is to try to find the bottom with small positions. After which, when the dust settles, then consolidate your holdings for the next run. That is if there is a correction. However, if there isn't then just enter the positions again. Transaction fees are the costs of keeping the integrity of you capital.
Anyway. with the exception of MiddleEastD, I have cleared all my trading positions.
Rotary @ 1.38
OKP @ 0.82
Ferrochina @ 2.64
Wheelock @ 2.66
Soilbuild @ 1.34
advSCT @ 0.96
CAO @ 2.79
AsiaEnv @ 0.69
TiongWoon @ 1.08
Federal @ 0.81
FJBen @ 0.88
Swissco @ 1.34
After selling those, my fund price dropped to $1.49 while the market just retracecd 2cents to $1.58. I am now $0.09 behind the market. Anyway, now that I'm sidelined and full of cash, I could start to cherry pick. I will most prob load up on CAO, Ferrochina, maybe Tathong, TW, and OKP once it goes lower. We shall see how it goes tomorrowLabels: advSCT, AsiaEnv, ChinaAviationOil, Federal, FerroChina, FJBen, OKP, Rotary, Soilbuild, Swissco, TiongWoon, Wheelock |
