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Thursday, June 23, 2011

Counter Trend

Looking for technical rebound, one could opt for 'counter trend' trading strategy. When a stock dives(due to some bad news), an oversold stock might attract bargain buyers and it will rebound in very short period of time. After a few days of rebounding, technically it might show buying 'signals'. And if more buyers(short term punters or traders) seen, the stock price will continue to rebound. Whether the rebound is sustainable, it depends on how the 'news' turn out to be. We could not ignore the market sentiments as if the bad news and sentiments still 'hanging out there', the rebound is not sustainable. It could be a knife that we do not want to catch. So, a strict stop-loss level should be placed and follow.

These are some of the 'difficulties' trading a diving stock. The 'signals' could be false and we will see it going lower. Besides, it is meant for short-term(fast) trade and one need to have the time(experiences and guts) to monitor them.

Examples : Muhibah and KEuro.

LionInd : Breaching RM2 now. Wow. It is playing with news now and syndicates/sharks using it for short-term bait, luring many ikan-bilis traders to punt. Beware.

Now, Lion is leading the 'steel' to rally - Kinstel and Huaan are active now too.

2.30 pm : KLCI down 3 points, partly caused by RHB's bad news.

Equine : As I grabbed at 0.50, it is at 0.555 today, I will sell half at 0.57 resistance level as planned. I grabbed her last month, I think.

XOX : Wow ... rebound strongly today. To me, anything shoot up in short while = sell. Dont worry much, as when it is diving lower in days, one may want to buy it back. I do not have XOX. It really sounds like SOS leh.

SPSetia-wb : Low volume, dropping to 1.11 level now. Stalk.

2.50 pm : Strong buying seen in Equine, done at 0.570. At 0.575 now. Let us check its next resistance to sell all ... errmmm ... 0.615 level. Ok. queue 0.610 to sell all.

EAH : At 0.365, new low ... queue 0.35 to buy more.

EPMB : Diving to 0.91 level now. These are few of my "E"-stocks I am stalking.

Aeon : 2,000,000 unit of shares done at RM7.52. Yes, 2millions. So, the value is above RM15million. Every one cent up/down, it will be RM20k!! Wow!!

Genting : At 11.30 level now. Last week, YH sms-ed to let me know she bought Genting at 10.82 level. Yes, she is doing well as she follow some plans with lots of patience. At 11.40 is resistance but I m not going to sms her to ask her to sell. I will want to let my 'turtles' to be independent and they could do much better than me!!

UOA : Some buyers seen today. Grabbed at 2.30 market price now. Noted.

4.10 pm : KLCI down 3 points plus.

RHB : Diving now to RM9 level. Watching RHB at 8.70 and 7.80.

UOA : UOA done at 2.27 - 2.29 too.

XOX : Up 20% today ... wow.

Slowly, I will be deleting most of the songs posted here and transfer it to my songs blog. Yes, I will want this blog to be my trading adventure - what I analysed, what I read, financial markets related news ... and such.

My songs : http://cpteh2.blogspot.com/

Will also create another personal blog to write about my random thoughts. It will be about my teaching job, my works, bowling, Liverpool, politics and such.

By doing such, this blog will be more focus only on stock markets mainly KLSE.

But, there will certainly be lesser posts here. Those who are interested to know my pathetic(LOL) day-to-day living ... you will find me if you wanted too. haha.


TEH

2 comments:

Anonymous said...

^V^ u trying to be a tak ada akal blogger ^V^

CP said...

Hi

That is your personal view. We all have different views. We have to accept that.

Many of times, we do not need to try to be others. being ourselves could be better as I could find peace.

We do not need to answer others or critise others too. We should have our own stands and respect others too.

Just my opinions about being a nice human.

TEH