Nov 3, 2011 10am Mid-week Webinar (Open to everyone)
Tonight uncle Ben Bernanke will have his glory again in the FOMC meeting. The last few times, market reacted badly. Will it be different this time? Join me in this webinar to find out more. To access the webinar, just click on the hyperlink below.
Click here to access the webinar at 9:55am Thursday morning.
My opinion
For those that shorted, please set in a trailing stop to protect your profits. Do remember that tonight will have FOMC report and Uncle Ben Bernanke can do anything. That means market can swing down or can swing up.
Over the last 2 days, I had good profits and closed my S&P500 and EUR/USD shorts yesterday (early this morning) and set a trailing stop in HSI. Now deciding to see if I want to close half or set a very close trailing stop in HSI. Alternatively as of now, HSI is still black candle. May be I will close it if it turns white.
Those thinking to short today, do note that you will be chasing. Maybe uncle Ben will give you some good news but just remember that your risk will be higher. Those thinking to long, do watch for reversal candle first.
Confidence….
When market moved higher this morning, a lot of people panicked. Most important is, if you have shorted, where is your cut loss?
I know this is not the right place for this video. This video should be in http://DreamFirstAid.com but then, this is my website. I will speak from the heart. Do watch this video. Over and over again if possible… No, not the word possible. You MUST watch it over and over again!
You deserve better, never settle for less.
If I live by faith, what more can I accomplish? It is not what they think that makes me a breakthrough, It is what I think of myself that determines my destiny. Live by passion, follow your heart.
UOB (on request) – hit resistance and fell
UOB hit a strong classical resistance of 17.65 and fell badly today. As long as you understand your risk reward, one can look into entering a short position. However do note that today banks fell a lot already, therefore, there will be some “chasing” involved. DBS is a bearish engulfing candle.
My personal opinion
I hate to say I told you so, but to long on Monday is like living life on the edge. Market is extreme overbought and if you don’t know why, watch the YouTube video again. When market is low, a lot of people are afraid to buy. But when market is so high, then people are thinking of what to buy. Funny, I thought people likes to buy only when there is a Sale? How come it does not apply in stocks? Simple answer: greed and fear. Therefore, to be a good trader, one have to control greed and fear. There is no way you can overcome it, and there is no way you can totally control it. That’s what makes us human. But at least when you recognize the signs, you can at least know when it happens. Like my idol, Tony Robbins mentioned, the first step of solving a problem is to first recognize that you have the problem (or something like that. I forgot the exact phrase).
If you miss the long position run higher over the last few weeks, there will always be another opportunity. I rather stay out from the market and miss making a profit rather than regretting making a losing trade.
And if you are thinking of shorting, do remember your risk. There is a high chance we can form a higher low as the previous run higher was just very strong. Therefore, you just have to understand that you will now be against the trend. Which means, market has a possibility to turn around anytime and run higher. This week, there is a lot of economic news. Japan intervened today, and on Wed, Ben is talking, Fri, Non-farm payroll… oh, go check out the forexfactory to find out what else… Therefore, if there are any number “manipulation”, market may just flew higher. Of course I will be hoping it will go lower, but then, I have a trailing stop all the time.
Down down down…
Noble Grp – Pierced the bull
Unfortunately after I highlighted it in the chatbox, Noble Grp went down a lot more and closed at day low. Therefore, if you missed the alert, then the risk is now higher as one will be chasing. Do expect some selling pressure tomorrow as those on contra will be forced to close their position as it will be T+3.
CityDev (on request) – lone ranger among the bears
CityDev is unusually strong especially when STI is -50. If CityDev was black, STI would have gone a lot lower. As of now, there is no bearish reversal signal seen yet, but this counter you need to keep it in your watchlist later today to see of it does roll over. And when profit taking is over, then be on lookout to see if it can go higher.
SATS – 3 hanging man in a row
SATS over the last 3 days continuously showed hanging man candlestick. Could it be the third time bad luck?
F&N – Bearish candle at overboought
F&N hit a strong rounding top resistance of 6.30 and could not go higher. RSI and stochastic are overbought and MACD histogram got a change of color. However downside has to watch as a lot of moving average are ganging up together at 5.80 to 5.90.
