DOW up 300 points ... if one is to buy, check if the rebound might be short-live again. So, time to add some stocks again while remembering that we are still in the grip of bear.

Being more defensive, I went for Parkson. Hmm ... Supermax do look attractive but I think I shall prefer Genting or O&G counters.

GLD and SLV retraced as stock rally. Hence, we wait for more weakness in gold/silver to collect more of them. GLD at 177.7 and SLV 40.6, dropping the most in a day.

Quote : Bad news in a good stock is a good news.

Example : TENAGA

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on TENAGA NASIONAL BHD at RM5.43 at which it is trading at a FY12 price-to-earnings of 14.3 times and price-to-book value of 1.4 times.

The research house said on Wednesday, Aug 24 Tenaga broke below its medium term support trend line few days ago.

'This could entice greater selling pressure in days to come. If we are right, the next downleg would drag prices towards RM5.20 and RM5.00 next,' it said.

CIMB Research said the technical landscape continues to deteriorate. MACD is hovering in the deep negative territory while RSI is also below the 30pts mark.

'As long as prices stay below the RM5.80 support-turned-resistance trend line, the bears will continue to dominate. Hence, selling into strength looks like a good option here. Near term gains are likely capped at RM5.52-RM5.68,' it said.

8.20 am : Gold at 1840 level, dropped from a high of 1910 to 1820 this morning.

Expect KLCI to rally today ... yeah ... buy buy buy ...

Buying signals

Short-term signals : When a stock tanking, all the indicators will show negative-situation. A short-term trader should have exited when it breaks a support or cut-loss point. Then, when it rebounds ... like yesterday after lunch(gold down, DOW future up, HSI up ... ) when some funds having fun with KLCI, pushed it up by 10 points ... many of the stocks rebounded and shown some initial positive signals(such as hammer formed in Genting). Being a short-term trader, one may want to take a higher risk of buying before market closes as DOW is pointing to rebound(one of the excuses I sold my paper-silver after holding for just 2 weeks).

For a more conservative technical traders, they might want to wait for more positive signals and lagging behind current situation. IT IS OK to lag as overall, the technical landscape of MANY stocks is NOT good. Hence, the early buy signals could easily be false-signals and nullified.

Volumes ... another very important indicators for traders should be taken into considerations. Increase or decrease in volumes showing us the current sentiments. Bear in mind that KLCI is NOT a liquid market and many stocks are NOT liquid enough for us to be confidently use volume-price analysis. But ... err ... better than nothing. Still the most important criteria to me.

With good volumes and a positive candle-sticks, one could get into some stocks yesterday before closing and could profit more but the risk is higher. The quote "high risk, high gain" could be applies here BUT I do not agree with that vague statement, anyway. That deserve another loooong post of such bad statements many traders used.

Making decision is hard ... seriously. One day market down, the next day it is up ... next week down again, another week up. Arrghh ... that is called volatility, which a short-term trader needed. We cant trade something not moving, can we?

With high volatile markets, it is the BEST not to trade or in markets for novices/newbies. Serious ... we dont know when to enter, and if signals fail ... we get stucked and dont know how to exit as we do not have a plan to exit!! We do not even know why we are buying a stock in the first place!! That is high risk, low gain(or losses!!).

High risk ... better know your exit-points

I have only one female turtle at the moment. Yes, 7 + 2 + 1(me) males ... 10 of us males with a rose there in a closed room!! Haha ... so, I took that as an example ... she came in to my class, she is taking a VERY HIGH risk. First of all, I am a stranger to her ... all the guys there are strangers to her ... so, I asked her " DO you know that you are taking a very high risk here". "Not only you are learning from a person without qualilfication(LOL) but coming here at night, in a room with 10 males!! GOSH!! " ... She just smiled and said "Yes, I know" haha ... we laughed. I like the second class better as we are more relax(tho many in losing money positions, I think) and could joke. I am a joker, u see. haha ... Then, I questioned her "Do you know how to EXIT from here?". That is what I mean by exiting-plans. We went in with a high risk trade, we certainly need to know how to exit!! Betul tak, murid-murid? Hehe ... betuuullll.

HapSeng-wa : No opinion on her but I will be playing ding-dong with her, hoping to gain some money for mooncake. Haha. That is called GAMBLING - risking money for profit, without research for short-term gain. Queuing at 0.435, 0.430, 0.425 and 0.420.

Slv-c1 : At 0.665 today by market-marker. I will check on silver chart and trades to consider her again. Nope, it is not a buy unless silver showing technical recovery. This is NOT even for novice punters. It is pure gambling.

AirAsia : Continue its dive ... the QPR factors here. If QPR wins, AirAsia up? Haha.

AirAsia Bhd, Asia's biggest listed discount carrier, fell in Kuala Lumpur trading after reporting a 48 per cent drop in second-quarter profit on higher fuel costs.

The stock dropped 1.4 per cent to RM3.57 at 9:04 a.m. local time, set for its lowest close since Aug 12.

Supermax : Ok ... see how far it could rebound. Grabbed some(3.02-3.04 done) ... is it still a defensive counter? Sure?

Parkson : At 6.65, selling now will gain me a dinner. So? Buy yesterday, sell today? That will benefit our brokers as we need to pay fees!

HapSeng-wa : Done at 0.43-0.435 so far. Coming lower ... hang-on.

KLCI was 3 points up, now is flat and might going into red as short-term punters taking small-profits(for raya or moon-cake festival or even for merdeka holiday). Weaknesses seen across the board. So, if one rushing in to buy in early morning market-opening, will you run for your life now?

SLV-c1 : Grabbed back at 0.67 as I am releasing HapSeng-wa. Have to eat maggi-mee tonight. Hehe.

Parkson : At 5.68, clearing some at 5.70+. Will check later.

Genting : Well, was up nicely just now but ie red again. Short-term signals tend to fail.

Supermax : It is a trap ... arrghh ... at 2.97 now. Check if it could rebound, otherwise cut-cut-cut. There goes my dinner .. grabbing more at 2.97 done!!

10.10 am : HSI down almost 200 points now.

Parkson : Sold half at 5.70 done. Hmm ... going to 5.80 now?

HapSeng-wa : Done more at 0.420-0.425 ... so, I am stucked.

Cut-loss : I hv cut off Chaoda last week for some losses. Now, if I do not, I am about 20-30% down with her. Phew!! At times, cut-loss ... then it move lower, we feel relieve. But after we cut loss, it reverses ... then, we might think of grabbing back!! It is OK, you know. If we cut-loss and it rebounds strongly the next day or the next moment(at times, I cut in the morning, in the afternoon it shoots up strongly. haha ... that was when I was a raw-novice 1-2 years ago). These things happen ... and we will THINK market is going AGAINST us, yes ... just us. No one else could be so-so-so bad luck!! Hmm ... LUCK, right? Wear your lucky shirt, then.

3.10 pm : Terrible cut in HS-wa and Supermax as the trades went wrong. Terrible .. no luck.

HSI down 230 points now and silver below 42, gold below 1850.

Genting : Need to close above 9.70 for it to be technically triggering a short-term buy signal but at 9.67 now.

HSI down by 300 points. ALERT. Bearish ... so run run run ...

HapSeng-wa : Now, as I have bought at high, and sold her off when she reached my 0.41 cut-loss level, it is at 0.395 now. Should I grab her back? Nope ... cut, run ... hide. Hehe

HSI down 370 points. ALERT. KLCI down 7 points at the moment. So, whatever technical signals to buy yesterday(too short of term) will be nullified and time to trim again.

Cleared off Parkson to take the profits and run ... while Supermax not flying, so bye-bye.

4.35 pm : Yes, technically it is a buy ... early signals tend to FAIL when market sentiments changed into BAD. Genting is a good example again ... a hammer needs confirmation even tho the signals are early that it might reverse. Many might want to bottom fishing ... but the pressure from the markets is greater!!

So, today is another bad day for many traders ... and investors in jittery mode. QE3 is nearing ... we should be in FEAR ... what should we do? DO NOTHING. No buying if you are novices. No buying if you could not cut-loss as today down, tmr down, then up up and down again.

The only thing will do well is gold and silver at the moment. Correction seen yesterday, perhaps a few day will be good to collect more.

10.10 pm : DOW up 100 points. Bullish as Gold and Silver correct for the second day. Wait for few days correction to collect.

11.20 pm : Oh boy ... SLV down 3%, so my punt into SLV-c1 will register a red and have to cover the losses. ouch.



TEH