Technical Rebound

There was noticeable relief for trend traders when the market rebounded in earnest
just as it was looking like another free fall day.The1600 key support level was never really threatened but the early fall did caused panic selling among retailers and as envisaged yesterday the contrarian and astute trader would have capitalised on such a phenomenon and made some quick and handsome gains along the way... early volatility paved the way for cherry picking and as expected the O n G counters led the way...

Throughout the day bouts of selling (presumably from foreign funds spooked by impending elections ) were interspersed with bargain hunting ..and the tug or war did result in a more "normalised" market compared to yesterday...

No one can say for sure how the market will move from here in the short term.What is more important is "how " one copes with so much uncertainty.Doing nothing is of course one possibility but is it the most ideal ? There are so many trading or investment opportunities that have opened up in the last 2 days alone. Stocks that you always wanted in your portfolio but was a tad too expensive may be within your budget now...Further you can also consider share swapping ie selling a slow moving stock (non performer ) with a hot favourite eg O n G counter. This makes perfect sense if the "new " prices are about the same.

Whichever way you decide as long as you have a clear objective in mind you are probably better off than doing nothing.

By the way,  I will be presenting a talk on the above  soon. Details are as follows...

Date : January 23 ,2013
Time : 8 to 10 pm
Venue : Unit 809,Block A
             Lift lobby 3
             Damansara Intan
             No 1 Jln SS 20 / 27
             47400 P Jaya ( next to Tropicana City mall )
Course content : Learn how to identify correct entry points for stocks consistently under 

the Price Action Technique (PAT ) so as to maximise profits on sale at a later point...

under the context of both day or position trading

Free for all forum members and first time attendees.
If you are keen to attend kindly contact Ms Julie (my PA) at 012-2009389.

Thank You

Chris Choo

chrischoo007@gmail.com

http://traderight88.blogspot.com