Market Volatility in 2010

The Year 2010 proves to be a ferocious tiger which is proving hard to tame and causes lots of market volatility in the stock market. In my point of view, this is a year whereby trading should form part of your investing strategy. As a trader, we must always bear in mind that our anticipation of the stock price would never be 100% accurate. Market dynamics changes very rapidly, therefore it is essential that we learn to evolve and change our strategy in accordance with the market condition. As I am typing this blog, the US market is plunging very badly across DJ, Nasdaq and S&P500.

Some of you may realise that charting techniques do not provide a 100% percent reliability. To be honest, it will never be as the purpose of charting is to provide you with a general feel of the market sentiment and determination of trend line. This blog has been inactive for awhile as I was away handling some of my personal matters. From hereon, I shall make it a point to update this blog regularly to provide you with some insights and practical technique to be use in the stock market.

New upward trend, new opportunity to trade

Counters that is worth focus are as follows.

1. GoldenAgri: Buy @ 0.455, sell at 0.51
2. Ausgroup: Buy @ 0.71, sell at 0.8
3. Raffles Edu: Buy @ 0.49, sell at 0.58
4. Midas: Buy @ 0.865, sell at 0.92
5. Yingli: Buy @ 0.785, sell at 0.86
6. GuccoLeisure: Buy @ 0.68, sell at 0.78

Market rally might last only up to next 2 weeks. Do make full use of this opportunity to profit. Please exercise your own judgement while investing as my recommendation are meant for your reference only. Good luck and have fun trading.

Recommended counters for short term trading

For those who favors trading blue chip counters, I have listed some counters for your consideration.

1. Capitaland: Target buy at $3.64 and target sell at $3.94
2. Golden Agri: Target buy at $0.435 and target sell at $0.465
3. Cosco: Target buy at $1.2 and target sell at $1.26

Mid and small caps counters are as follow:

1. Yangzijiang: Target buy at $0.965 and target sell at $1.01
2. Great Group: Target buy at 0.395 and target sell at $0.45
3. ChinaAniH: Target buy at $0.255 and target sell (t.b.a)
4. Medtecs: Target buy at $0.145 and target sell at $0.2

Pls trade with money that you can afford to lose. Good luck and have fun trading.

Impact of Japan election

The landslide victory of the opposition in Japan will cause stock prices to rise for the next two days due to anticipation of positive changes by investors. The Yen will rise as a result which in turn causes the dollar to drop. Furthermore, due to the easing of recession, demand for oil will be expected to turn better. This will create support for oil price between the range of USD$70 - USD$75.

The positive news in Japan will most likely lead asia market to rise irrgardless of the poor performance by US market on last friday. However, the joker in the pack will be China. How will China react to this piece of news? China have been on a downward correction for two weeks, this has causes capping ripple effect on the rest of asia market. Nevertheless, this does not means that there will be major correction happening anytime soon.

For this week, focus on mid cap companies and penny stocks. These will be the ones which are likely to have more play. Blue chip companies should be having its stock price correction or sideway trading for this week. As a result index will unlikely rally too much for this week nor will it fall that much due to bargain hunter entering the market to purchase.

Stock tips

Just observe there is an opportunity to buy swiber today when Singapore market open. Buy at below 1.02. By next week, oil prices should begin to strengthen and this will result in swiber appreciating in stock price. Tentative sell price for swiber will be at 1.1. Pls exercise cautions and implement cutloss strategy when investing.

Current stock market trend at the moment

For those with an eyes for detail, you would notice that even though the index was in the red, small cap companies are still rallying. The economic situation may have improved slightly but investors attention have turned to growth instead. Investors have grown tired of knowing that the recession is ending and now they are expecting more. The next rally would most likely be trigger by anticipation of growth, till then, the straits times index will most likely be hovering and sideway trade for awhile.

Therefore, in the mean time, you can consider trading on the mid cap and small counters whereby speculators are in play. Do take a look at JES, can consider to buy at 0.23 and sell at 0.26. MACD and stochastic oscillator are both showing bullish buy call. Do remember to exercise caution while trading and implement a cutloss strategy.

Possible short term stock gain

Below are the buy recommendation based on my personal analysis for your consideration and reference . Please exercise cutloss in the event of adverse market condition.

1. Yongnam: Buy at 0.31, sell at 0.36 or when price touches 10 simple moving average
2. Bayan Tree: Buy at 0.96, sell at 1.05 or when price touches 10 simple moving average

Purely speculatvie or gambling, can try to buy SUNMOON at 0.005. Try your luck to sell at 0.01 everyday. Potential profit of 100%. Pls do not use contra trading for this counter as you would need to hold to make money. Do not place a big position on this counter (recommended to be below $3,000). The max price for this share is most likley 0.01 only so do not try your luck to sell at 0.015. The rationale for buying this stock is to rely on the bull trend to attract speculator of penny stocks to come in and push up the price of this counter.

New uptrend spotted in US market

A new uptrend for the US market has emerge. Time to enter market to buy. Some of the counters to watch out are as follows:

1. HongFok: Buy at 0.695, sell when price touch the line of 10 simple moving average
2. Swiber: Buy at 0.93, sell at $1
3. Allgreen: Buy at 1.14, sell when price touch the line of 10 simple moving average
4. Capitaland: Buy at 3.66, sell when price touch the line of 10 simple moving average
5. Ausgroup: Buy at 0.63, sell when price touch the line of 10 simple moving average

Pls remember to exercise cutloss strategy if you are contra trader. If you are using cash to hold, you would not need to panic even if the prices fall because you can still hold on to it.