Saturday, October 30, 2010

Waterfalls : Education

HELP : At 2.40 support level, breaking this level ... let us look at 2.20 then. Then, the landscape changed. Can I help you with your HELP?

SEG-wa : At its low, watching it to drift further down and breaking RM1 soon? SEG's RSI at 31 level, and since it has been drifting(not diving) it is NOT a nice waterfall for me. Now, I wont grab SEG-wa tho it is in-the-money with 1750 days to expire(my tww main criteria in a warrant - low premium and long expiry date) because to play warrant, we need an uptrending stock(unless it is a put-warrant). Unless I have lots of bullet to wait for it to rebound. At the moment, the hammer failed. The only chance will be it move sideway, forming a base for a while before rebounding again.

Both SEG and HELP have shot too fast and furious, reality is back. Those without cut-loss point are still(and will) stuck inside. Warrrants are for trading, not for buy-n-hold. We buy warrants only when we see mommy has a potential of moving higher. KFC and QSR in mind.

So, what should I do if I have bought into SEG-wa and it is at the bottom now? No one could tell at the moment if it will form a base(best case scenario) or drift lower. A sharp rebound is not really possible(after the failed hammer). Technically speaking, it is bearish. AVOID at the moment. Those stucked, could only wait for it to move sideway. If the loss is not so much, cut it off and look lower. If you could wait and have enough bullets ... then HOLD.

It is in my warrant stalk list and also in my waterfall list. Beautiful, actually. Just that it is not time to buy YET. The upside is huge, so watch ...


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