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Sunday, September 25, 2011

On Blog Leave

I will be traveling to the United States for business and won't be updating this blog until October 10!

Tuesday, September 13, 2011

Trading Ideas - Olam

The STI fell 2.89% to 2743 Monday on concern over Greece. The Dow has been down as many as 167 points but a report that China was to buy Italian govt debt and make other investments in Italy sparked a huge rally in the last 90min for the index to close up 68 points.

Locally, after falling 1.11% on Friday and 2.89% on Monday, STI may rebound. Should a rebound occurs, Olam could be a counter for trading play :


Sunday, September 11, 2011

Noble - Short Setup

The Dow fell 303.68 points, or 2.7%, Friday to 10,992.13, leaving it with a weekly drop of 2.2%. Asian market is likely to gap down on Monday and faced strong selling pressure.

Although it is going to be the shortist's world where you can short any counter, it is safer to choose stocks that has a proper setup to short since many stocks have already plunged on Friday when STI loss 31.8 points or 1.11%. Noble looks set to be a good candidate because the stock touched the 40MA with a doji and reversed. This has been the pattern the past three occasions where the stock retreated after touching the 40MA ( see red arrows ).

IndoAgri did attempt to breakout on Friday but failed to closed higher. As a matter of fact, the closing candle was a shooting star which has bearish implication. This could be another candidate to short too.

PS : It is vital to stay vigilant while shorting since the STI has already plummeted by 1.11% on Friday ahead of the 303 points fall in Dow. The bulls may fight back at some points during the day.


Thursday, September 8, 2011

IndoAgri - Possible Breakout ?

IndoAgri is approaching the long term downtrend line. Breakout denotes sign of strength and will sought $1.5, $1.6 and $1.7 as targets. Failure to surpass $1.45 calls for a pull back to $1.20.

The Market
STI closed with a hanging man candlestick in evening star position. There is bearish implication from this closing.


Tuesday, September 6, 2011

Intra-Day View


Time to cover the short and take profit !
Last Friday : $1.59. Today : $ 1.45. Difference : $ $1.59 - $ 1.45 = $ 0.14

The Market
The major trend is still down and bearish. However, if the STI can maintain at the current level ( 11:30am at 2,745, -27 points ) till the closing without any further violent sell down in the afternoon. We will have a nice doji during closing and this will imply we may have a short-lived rebound the next 1~2 days.

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Friday, September 2, 2011


Noble closed with a shooting star candlestick yesterday after touching the 40MA, a perfect setup for short! Although the market looks in favor of the short side, we should remain vigilant of any sign of a bear trap.


Thursday, September 1, 2011


CityIndex Problem

For the past two weeks, I have observed a pattern in Cosco and Yangzijiang. That is, they both move in tandem of each others. If Yangzijiang is trading at $1.10 while Cosco at $1.05, the laggard ( Cosco ) will catch up very quickly and trade at the same price.

This morning, I spotted such a scenario again. While Yangzijiang was trading at $1.17, Cosco was still at $1.13. There was a spread of 4 cents where I can profit from.

I immediately placed a trade via CityIndex for 20 lots of Cosco at $1.145. As soon as I placed the order, I tried to look up for the order from the Active Order tab but no open order was found. After struggling for a while, I called CityIndex. I was shocked when they told me other than keying in the buy order for 20 lots, I have keyed in another order to sell the same 20 lots at the same price I bought them. I wonder how can it be possible? The trade history below shows the buy and sell orders were 3 seconds apart. How could it be possible that I can keyed in two orders consecutively with 3 seconds apart!?

At the end of it, a trade that I could have made $400 in one minute ( because Cosco did rally up to $1.165 as I was talking to CityIndex ) ended up losing $21.70 in commission. I think I am going to cancel the CityIndex account and park my fund elsewhere!

=== Updated on Sept 2, 2011===
The same problem happened again the next day. Having gone through what I had gone through once before, I was extra careful and cannot be wrong this time. I have decided that enough is enough, I will move away from CityIndex!