Trading 4 Living-get TOMORROW's movers TODAY

Thursday, September 2, 2010

PNRA

I picked this one up two days ago, now it is time to take some profit.

Updated: SPRD

You should take some profit off the table.

These sectors outperform

Biotech, chemical and retail are leading sectors in this rally. Bank and semi are still lagging.

Tuesday, August 31, 2010

SPRD

I added this to the newsletter two days ago, today it flies!

Monday, August 30, 2010

Trust me, I am confused like anyone else trading this market. I am a swing trader who needs a trending market to profit. Let me put this way, I need some green bars altogether or some red bars altogether, not a green bar followed by a red bar followed by another green bar. The recent volatility frustrated me and I have no solution to it, but decrease trading to a minimium level.

Back to the market. As usual, some positives, some negatives. Let's list the negative first.

1. Tomorrow we will have the non farm payroll number again and we are still trading at the lower end of range. The longer we stay here, more likely we will go lower.
2. Banking index is VERY weak, especially GS.
3. The Hindenburg Omen and death cross etc all point to a steeper decline.
4. The economic numbers are bad, as usual.

Now positives:

1. China is still holding an uptrend.
2. Draw the trend line differently, the banking index is sitting on the support, due for a bounce.
3. Very bearish sentiment according to AAII. I also did a survey at http://www.bespokeinvest.com 64% readers see Dow 9000， 36% see Dow 11000. It also validates the deep bearishness among the investors.
4. I can't think of any reason the market crash here without any particular bad news. The financial crisis happened just 2 years ago, the Euro crisis and BP crisis just a couple of months ago, it is rare we will see another nasty event in a row.

So which direction should we go? After all those sayings, I honestly don't know. All I know is if we have a negative reaction of tomorrow's number, I will cut longs, buy back FAZ for protection!

Saturday, August 14, 2010

Another leading indicator I am using

Besides our banking sector, China has played a major role in my analysis. China has grown to a much stronger economic entity, now the whole world is evolving around it, including our stock market. From the chart above, the Chinese stock market is challenging the resistance and forming a bear flag. So it also says caution and lots of cash needed.

Banking sector broke down

Looking back the last post about four months ago, I emphasized the importance of the bank and it is still valid. The weekly chart of the banking index has clearly broken the trend line. That means caution and cash is the king.

Friday, April 9, 2010

Powerful run by Nasdaq

The Nasdaq has enjoyed a powerful run since the New Year. I remain bullish and I don't see an end right now as long as the bank sector performs.

Hello again!

Finally I found another way to crowl over the Great Firewall after the Hotspot was banned in China. So after being absent for the last 4 months, I am here again. While I enjoy the rapid appreciation of Beijing's housing price, I do hope the authority can give the internet some freedom. Afterall the internet is about communications, it is about the freedom!

Friday, December 18, 2009

Hello from Korea

Sorry for the lack of posting for the last 30 days. I have been busy setting up my new venture in China, which will include investing, training and education. Back to the market, it is consolidating the huge gain from 09. Whether it is a top or a resting phase, we shall see in the new year.