Tuesday, August 24, 2010

DOW down a little. A123 climbed up from its low at 6.51 to close at 6.80, forming a black hammer. Time to buy?

Rubber stocks

Adventa : At 2.63, RSI at 25. Next support at RM2.40.

Kossan : At 3.60, RSI at 32. Next support at RM3.40.

Latexx : At 3.36, RSI at 32.

Supermax : Closed at 5.50. RSI at 32 too. Next support at RM4.95. P/E 14.

TopGlove : Closed at 6.06. RSI at 34. Next support at RM6.95. P/E 21.

8.50 am : I bought two books from MegaMall's MPH yesterday - Infinite Wealth and Warrant. I will be using these two to look into YTLPower-wb and KPJ-wa. Re-learning what I thought I knew but actually I might not.

10.05 am : JCY interestingly at 1.13, I m queueing at 1.10. Will it be done today? Low will go lower ... tell it to my A123. Hmm ...

JCY : Moving to 1.12 now, so clearing at 1.22 last week was a 'good' decision? I hv only cleared half for Unisem(which down too), so clearing ONLY half at 1.22 is a 'bad' decision(why not clear ALL?). This is a dilemma of traders ... no such thing as good or bad. Make money, good. Lose money, bad. It that so? So, IS BUYING 1.12 at the moment is GOOD or BAD? Yes, we need to speak about what is expected in FUTURE ... but can ones really predict? Logically, being an INVESTOR, we should look into weakness to BUY and clear it when we registered some profits and it shows reversing again? HOW do we tell?

IJMLand : I want to write about this - which I missed the boat - when I wrote about it 2 weeks ago, and when I saw it in CN's forum, it is already UP ... can really buy when move up? Are you sure? It is at 2.38 now and going into profit-taking soon. If the time frame is too short - we could be buying and selling in daily basis!!

KPJ-wa : AT 1.73 now, refused to move to 1.70 anymore? Time to collect?

JCY : Grabbed at 1.12 and 1.13 done. Waiting at 1.11 and 1.10.

Unisem : AT 2.02, wait for 1.95

SL : I hope you have cleared your SPSetia-wb at 0.580 that I told you as the target. Bought at 0.42, when SP rallied, it is TIME to SELL. Today, it is down ... at 0.53 now. Warrants are meant to TRADE, ya. IF you have sold it at 0.580(it touched 0.59, I know), can I have a nice free-dinner, please? Hehe.

Are you a trader or investor?

Many DO NOT know if they are traders or investors. I m one of them!! Haha. Generally, we will think that INVESTORS using a longer time frame and traders a longer one. Well, that is only partially correct, in my opinion. A trader could be a 'longer term' trader as his babes keep running higher and no selling signal seen(as he is using longer time frame). He could be misunderstood that he is an investor!! As for investors, he should only be buying when market collapse!! WHAT?? Crazy meh ... markets collapse, you buy. Well, that is for investors.

Now, I need to point that many are actually TRADERS. They bought into a stock due to a piece of news or 'hot-tips' or recommended by broker houses/ remisiers ... well, for a quick profit, actually. BUT ... when market turn around, they got stucked and becoming INVESTORS!! Instead of being glad that he could buy MORE at cheaper rate, he get nervous and cut it off when the pain(of losing) is unbearable!! Ever have such experiences? I DID ... many times, indeed. This short-term punters or traders becoming a loooong term investor!!

Example : LCL got many badly burnt. Please check on its chart ... you will be amazed WHY this is such a 'darling' of KLSE. Until the middle-east crisis, and founder thrown his holdings ... it was still a good hot stock!! WOW ... today, trading at 10-cent level, in PN17, it might NEVER recover or even de-listed. MANY who bought at RM1 or even 50-cents are BADly burnt. Do you know that MANY are still HOLDING to it, with a HOPE it will recover .... one day? Because I m a looonger term investor!! HEY, INVESTORS look into FA and good stocks to buy,ok? Since when LCL is a good fundamental stock? I still remember someone asked my advice on LCL which he bought at 0.50-0.60 level and tanked to 0.30 level ... I blogged it here and asked him to CUT. OUCH 50% losses? Dont worry, if you have cut it at 0.30, you will take your lucky star that you have CUT it off and trying to recover your wounds. WHY? It is at 10cent NOW.

So, what is the different between an investor and trader? Will investors leverage on warrants?

Most of us want to claim that we are investors and we will hold till ... till the stock de-listed!! Dont laugh, many are in such a painful situation. IGNORANCE is one of the main factor. You saw SinoTop flying 100% higher, you get excited and convinced that it is the STAR of KLSE in a making .... hey, that is NOT the mentality of INVESTORS even you could hold it for another 3 years ok??

INVESTORS look for 'value' in a stock. DO you know why rubber-stocks rallied for the whole one year and making 100-400% hike in their stock prices? DO YOU? When it comes to stock, this is SENTIMENT driven. H1N1 or WHATEVER reasons will be used for buying into a particular stock related to rubber. Even IRCB is considered as rubber stock!! How about Well-call or Luxchem?? Are they rubber-stocks too? Of coz we have Incken as the rubber play too?

Look ... stock market OVER-react to many extends. Rubber currently in correction mode as it has OVERSHOT its values. Nothing to do much about the H1N1, high Latex prices, weakening of USD vs MYR ... or whatever points the analysts trying to explain on why rubber-sector being rubberished at the moment. Technical analysts will say ... stay away from the rubber-stocks as it is DOWNTREND. And many more chartists pointing out many names to it ... such as 'mushroom of death', a new term I learnt from CN's forum. DIE la DIE la ... those INVESTORS selling their holdings?

3.30 pm : KLCI is flat.

Supermax is DIVING ... game over for rubber-stocks?

Investors are someone sitting in the fence waiting for retracements, corrections or collapse of the markets ... all of these in a go, if possible.

So, having said that ... are you sure you are an investor? Look at our beloved Supermax being oversold now, ans still being thrown away today. I get a little greedy but I will stay patient(I hope) and grab it at support!!

Kossan : AT 3.40 now, losing 5%.

5.10 pm : KLCI marked-up 2.62 points in last minute buying. I cleared Gamuda at 3.37 for JCY and ready for Supermax.

KLCI is overbought. Do u know what is that means? KLCI is artificially supported at the moment for MERDEKA day. Do you know why and how? Logically, take profits on those overbought counters. Do you know why? Are you loooong term investor? Sure?

There is some SELLING pressure exerted in Supermax, Kossan and Latexx today. IF you are an investor, will you be buying into a good sector which oversold in the background of our bullish KLSE? Are you waiting for a second-dip in markets? If you are a believer of double-dip and a loooong term inestor, of coz your SHOULD NOT be in markets now - sideline ... waiting for the expected dip, either another half year or a year or more, doesnt matter ... you have the TIME. Wait ... till it dives, then BUYING SPREE starts!!

Conclusion : There are VERY few investors in KLSE, majority are traders or 'lost' souls who dont know if they are investors or traders. "Lost" as they are in the majority of losing money to Mr Market. Dont worry, you are certainly not alone - if 90% of us on your side, will you feel better? We are all similar ... are we STILL going to do the same mistakes expecting different results!! That is called INSANE.


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