Tuesday, May 28, 2013
Friday, May 24, 2013
After absence of break out setups for less than a week, I've got more than a dozens of them tonight, which makes me think this week's decline, only a minor hiccup in a longer term bullish trend. It seems that Japanese market's 12% drop has washed out weak hands and now some of previous leaders are ready to burst out again.
Thursday, May 23, 2013
Wednesday, May 22, 2013
Someone may want to ask if I loaded shorts in a down day like this. My answer is no, because stocks do not go directly from an uptrend to a downtrend. there is usually a noisy range-bound period of distribution in between. In a such consolidation period, both longs and shorts got whipsawed. I will not be surprised to see a strong bounce tomorrow, which will make today's short sellers not so professional:)
As I have been warning the top is near, today the market sold off with a outside reversal day that signals a top. According to bespoke, there were only 2 times S&P 500 hit all-time high and closed down more than 1% from that high and they were 10/11/07 & 3/24/00. That was pretty scary information! Since I don't have a crystal ball, I can't forecast this is the major top as the last two times, but I am pretty sure this is a top of some sort, maybe a short term one, maybe a longer term one. Who knows. What I do know is to tighten the stops and be extremely selective of your picks, as the market will get tougher from now on.
Tuesday, May 21, 2013
This is the monthly chart of Japanese stock market. You can see it is quickly approaching the long term resistance, which is very similar to our Nasdaq chart I posted down below. I am not calling a top, since I am a trend follower. But the chance to break out after such monster run is limited, I will apply same strategy as I trade the Nasdaq: tighten stops! Prepare for a lengthy consolidations.
Once the garbage stocks like YGE, LDK, JASO, STP are flying, it is time to scale back. Selling into optimism is always good idea!
Friday, May 17, 2013
Fuck, I am back!!!!!After blocked in China, I finally found a way to go around the Great Wall. I just need to pay over $2 a month for a VPN, which enable me to access Twitter and Blogspot. What a fucking dumb ass I have been. So I am back with vengence! Let's start posting charts!