Tuesday, May 12, 2009

Trade Analysis

If you have sold the stock as per my last post when you start to realize that the STI is unfavorable (in the morning), you would have made a profit of 5%.

Though its a profit, but for my TA, its a lost. Because, I am expecting at around 4 days whereby the STI would be dropping. And had you not taken profit,you would have made a 5% lost already.

Looking at today's charts, there is a hammer formation, which is suppose to be bullish for tomorrow, but its a weak signal.

The Strong Signal that I am expecting is: If the STI closes below 2128 tomorrow, you can more or less happily short the market, or buy STI puts, because chances of the market correcting is VERY high.

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