===Small talk in the Market ===
China stocks legacy ended briefly on Tuesday where most counters fall sharply on Wednesday after a big gap up. The rally is set due to China week long holidays as they celebrate their National Day. Major indices kept breaking new highs for 2-3 consecutive sessions?!?!?! This is very alarming as Dow Jones was one of the indices which broke record high even with its credit risk deficit….. Hmm where is the connection???
Amidst in the rally, we saw some spectacular performance in the constructions sector who follow the properties giant rally last week since the review of booming property article from Business Times on 27/4/2007. The most amazing play would be ei-nets… which make almost a 500% yield comparing it prices on 20/09/2007 to the prices today.
Personal thoughts/views
On the whole, the market is enthusiastic for the rise of the sleeping dragon for the 1st half of the week until the fever was stop. Haiz, we are not HSI ultimately…. this is extremely bad for me as I hope to release longcheer among the rally…. Have to keep in my pocket now... will look forward to release it in the year end rally. I only hope that Dow Jones (major concerns for the world economy) does not interfere with the year end rally….
Along the way, I have pick up Ouhua which I mentioned in my previous postings. I was really happy to see it rises 10 cents from my buy price but good things always have short time framed and it decline sharply to 0.525 -0.535… Short term support now at 0.535… May have to release soon for other attractive counters before it hit my buy price and goes beyond it…
As for ei-nets, personally I have received tips (from someone who is right so far with his previous 3 tips) to buy in August but I did not purchase it as I have doubts over it. Furthermore, the company has reported losses lately and makes me unconvinced with the tips… Well with the rise, it has proved that his tips are reliable… Though I have missed the opportunity yet again, I was not upset as before because it will make me uncomfortable to invest in it.
Next constructions, well I have realized a little late that the booming news for our properties giant will brings in the construction play. Though I did not make any new purchase in that sector, I still enjoy the ride from -Lian Beng- as it secured another contract from Kovan development site bringing up its book order to 575 million. This also makes me experience something new as it has broken new highs where I am not able to predict its resistance level from the chart…. Now I do not know when to sell.
Once again from the chart we see that prices reflect before news and know that it’s a dirty game after all with the 3 consecutive volume spikes from the charts!
Note: Previously, I had set my sell target at 0.58 before July correction, have now change my perspective on it and decide to ride on the trend.
Finally, I have dropped my target to even out my net losses before year end. I feel that this has given myself too much pressure and affect my psychology in trading. From this, I learn that a little pressure is good but too much make one person go haywire.
