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| Wednesday, October 03, 2007 |
| Quality Screening! |
As a trend follower, it gets kinda boring once you have your system done out. My system is done up, although its not yet robust as I still have to manually sell/buy my stocks. I still have to manually update the prices and the risks. Haha, I'm just not savvy enough despite the fact I'm from Computing. So all I do is to post my thoughts and just see if it works out.
So now we witness liquidity into our little RedDot. Although it affects primarily selected China stocks, we have seen obscene surges in practically every stock that has either China or Sino in it.
Question to ask. So who pumps in all these money?
1) The new investors from China?
2) Local punters?
Lets zoom in to analyze option 1. They have money and they according to wiki, they cant have more than 5% of a particular stock. So what will they do? Maybe they might just buy everything they can. This might just be possible. Again, this is a guess, and don't trade based on my opinions. I'm a newbie so don't blame me for losses. :) Anyway, fundhouses are mainly fundamental in nature, which might imply that even though they might just go for speculative counters, in the end, the focus is still on quality counters. My take is that new investors pumps in the money into the quality China stocks. In fact they might have invested in it already, which brings to the second point, local punters.
They listen to news, speculate, rinse and repeat. Usually, this group of people get rich fast but are also the first group to go broke. And thankfully, they have injected lots of liquidity. If they burnt their fingers in the process, they just have to work harder and then contribute to the market.
Anyway, I'm feeling sleepy and this should be the last post till my weekly update. Need to revise for tests (school work)). In a nutshell, liquidity is added from both sides and we can see that there are more funds available than stocks. Next few days we shall see the dragons and the kittens. Good stocks will surge and the rest will lose money .
Good luck all... really slpy now.. Nitez to all |
posted by Nenix @ 2:38 AM   |
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| NenixDreams Fund |
| Fund launchprice on 1st August 2006= $1
Target for 2007 = Beat STI index
Current price of NDF as of 1st Oct 2007 = $1.58
Current price of STI as of 1st Oct 2007 = $1.54
Difference with STI index is 0.04
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