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Saturday, September 04, 2010

DOW up 100+ points. Balik Kampung is on ...

ECM trading challenge - I will participate!! Lets the game on.



Jaks : On Wednesday, it touched 0.67. I would have queued at 0.675 to BUY(if I have a position OR stalking it to BUY). Then, yesterday we shot up, I would have cleared it at 0.725 for 5 cent profits. That is how I would have traded using Jaks as an example.

BUY : WHY at 0.675 on Wednesday

1. Support - buying at support during weakness is one important point I will like to have. That is technical part of the trade - support and resistance.

2. Volume - Due to its speculative nature, Jaks will attract many to move back in to buy. Days ago before Wed, volume decreased(showing selling pressure subsiding).

3. Oversold - It was at oversold level since Monday and would have been in my stalk list, positioning for rebound.

4. Fundamental - This is a short-term trading stock, we dont talk abut fundamental here, right?

SELL : WHY take profits at 0.725 on Friday

1. Target of 8-10% acheived in two days. Too fast up, risk is higher to hold.

2. Resistance : This is first immediate resistance, othrwise wait at 0.78 if you do not have any other counters to play with.

3. Counter-trend : With its downtrend(MACD below zero-level), a short rebound conter-trend play could be on high risk level with markets overbought and very volatile.

Warrants that I like

Play-it-safe

1. YTLPower-wb

2. KPJ-wa

3. IJMLand-wa

Short trade

1. GPacket-wa

2. Seg-wa

3. Fajar-wa

Buy-n-hold(if market collapse)

1. AnnJoo-wb

2. SPSetia-wb

3. Sunway-wc

With markets OVERBOUGHT and due for correction, it is a no-no for warrant-play. I have cleared all my positions last month. But, it is abuot time to do some homwwork on the above warrants - wake me up when September ends.


TEH

1 comment:

Anonymous said...

any news for Mudajaya? seem price jumped by ~0.5/share