Friday, August 20, 2010

Case study : EAH

EAH : Buy, hold or sell?

This is an IPO which shot for the sky in the first day. I do not look into it as many speculators and day-traders were playing with it. Then, obviously I was alerted when it formed a waterfall!! It was in my oversold stock and I started to read about it, to see if I could grab some. Dali's post helped(thanks Dali for the insight too). The next day after my readings, I posted the chart .. and it formed a long BLACK candle-stick on 3rd AUG. It came down from 0.55 till 0.48. I was collecting at 0.53 ... chasing it down to 0.48. OUCH. I was ready to buy more only at 0.45, its LOW. Since then, I didnt do anything about it ... keeping an eye and it touched 0.535 twice until today, it broken 0.535.

Tell me, should I sell or hold? Tell me ... or should I top-up? Mind you, I still have many waterfalls which falling on me at the moment!! Only EAH shoots up now. So, with that dilemma in mind, should one buy, hold or sell? I chosen to SELL ... and cleared some at 0.550. (now is 10.45am at 0.535 vs 0.540).

BUY : As it is technically moving above 0.535, its current immediate resistance, it is a BUY. High volume registered.

HOLD : If you have bought into it at higher prices or lower prices, will you continue to hold? It is interesting what is in ones mind.

SELL : If ones bought lower price, is it a sell? If you have entered at higher price, will it be a time to cut loss or HOPE it will move higher? Or are you an investor, believing in buy-n-hold?

Solar Stocks

STP : Closed at 8.48, breaking its strong support. Oversold as markets do not accept the clean-stocks in dirty markets. Many clean stocks are at its new 52-week low now. STP was at USD 15 level in April, and dived to USD8.50 level in 2 months!! As it rebounded to USD11, currently reality is back ... solar stocks are rubbish and many are losing money. Some might collapse and the sentiment is SELL SELL SELL. PE stands at 15 level now. The Nov 08 and Mac 09 low at USD5. Will you dare to buy into it at USD5 when US markets correct SOON? I hope I m ready ...

Green-stocks in US are having BAD times now. So, I m busy looking into these battered stocks. So many choices and I do not really know which one to choose from.

Besides green-sector, tech sector dealing with HDD is being thrown away too - Western Digital and Seagate are at their low .... look at JCY, ya.

In KLSE, the rubber-stocks and the tech-stocks are being battered. Well, to be fair, these two sectors have been shooting so much higher last year, and it is only 'right' that markets correct them. Whether they will rally again, I dont see it in nearest future. But, in weaknes, I just feel that we should be collecting those good stocks. The weakening of USD didnt help, either.

10.05 am : EAH moving today, time to THINK of selling. At 0.54 now. I m having quite a heavy positions in this one as I was collecting below 0.50. Will not top-up but let it runs ...

10.10 am : Cleared some EAH at 0.55. It touched 0.555. Queueing to clear at 0.59 and 0.62. IF all done, I m glad with the trade. Buying back at 0.53 - 0.50.

The "E"s that I like : EAH is a new entry besides E&O, EPMB and Efficient. I have added ENG as it is in tech-sector and doing well now.

4.55 pm : KLCI up 2.5 points and I grabbed BStead as it breaks 4.30. I sold some MAS at 2.17 for BStead. Follow the trend, as turtle said.

EAH : It is at 0.510. WOW ... my queues to grab back at 0.53, 0.52 and 0.51 were all done!! I m very surprised but I hv interesting points with my 'case study' of traders' emotions later(written in the morning when it shot up to 0.555 with huge volumes!!)

RULES in trading by Turtle



System One

BUY when it is at 4 week-high. BUY in 4-stages.

Example : I bought into Gamuda when it breaks its resistance at 3.36, and that was a 4-week high. I bought in 17th AUG and the last time it hit 3.36 was at 17July. Gamuda is in UPTREND and my only uptrending stock I m holding now, actually. Yup, I m testing out the system. At the moment, I only have 1k units of Gamuda as I m supposed to top-up as it moves higher, in 4 stages!! So, the total should be 4k units.

Now, it is at 3.36 .. becoming a support level, shouldnt I be buying my next 1k units? Or should I confirm the uptrend and to top-up later? What is the level should I clear all then? The reversal of the trend? How do I tell?

System Two


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