Staying at the sideline again.....
STI managed to clear 1,868 today to close at 1,876. This is needed to confirm the potency of the up trendline. The next major resistance is at 1,960, which is only 84 points away. The index has risen 122 points in three straight sessions. CCI is again in overbought. The risk / reward ratio has prompted me to exit all my wining swing trade positions today ( with a decent profit ). I will once again stay at the sideline to wait for new opportunity.
Those swing trade positions are still good but I just don't want to go through any potential rough ride especially where I can contra them off with a gain. Usually, I have a lower expectation on contra gain. If I need to hold, I will adhere more closely to my target.
I will still buy on the next dip but as we are approaching nearer and nearer to the major resistance, I will be more nimble with each trade. Instead of opening 3 ~ 4 new positions at one go, I will probably focus one at a time but with larger position size. Contrary to conventional wisdom ( larger position size means higher risk ), larger position size actually allows us to be more nimble.
I will still buy on the next dip but as we are approaching nearer and nearer to the major resistance, I will be more nimble with each trade. Instead of opening 3 ~ 4 new positions at one go, I will probably focus one at a time but with larger position size. Contrary to conventional wisdom ( larger position size means higher risk ), larger position size actually allows us to be more nimble.
Labels: Trading Digest
posted by Market Wizards @ April 13, 2009
Comments: 0
