Thursday, May 30, 2013

Weak Stocks in the Market

I am glad that we inform our client to take profit last week, telling them to reduce holdings on hand and get ready to short STI. We have been planning for this for long long time. Finally STI give us the signal. For those who shorted STI, now is almost 100points profit! This is good enough to hedge your  whatever long position that you are not willing to short.

Dear Clients, STI down 40point at 3413, Overall market is weak, REITS also Weak. we caution all to manage risk and reduce holdings by 20-30%( if have 10 stock, sell 3). For shorting, can look at Vard Holdings and Biosensor. STI index for hedging. ARTeam (23 May 2013 2.21pm)

Yesterday we hit it right on the spot as we were waiting STI to break below previous day low at 3393, once again we prove to many our strategy works well. Again we call to SELL REITS.

STI down 13 at 3392, Mid/Short Term can Take Profit as STI lower than 3393 Support. REITS sector weak(stay away). Clear off lousy stock on hand. ARTeam (29 May 2013 2.30pm)

Right now what is there to do now? I always feel that we should not act in Panic(E,g sell many counters at one go), now (STI down 50points), it is very hard to decide whether to sell or do not sell already. However, do note that sometime we still have to manage our risk. By selling 1 or 2 losing counters when it is dropping is always better than sitting down doing nothing. In this case, you will have clearer mind to decide what to do with the rest of your holdings.

Above pic are Weak Stocks current in Mid term downtrend, some could be down for long time already.

Is this a Market Correction(Yes), this is the second correction we are facing since the FEB to APR correction. So will this time last for 1-2 month that long? I am not sure about that, i will just wait for market to tell me when it will be back. Now is beginning of mid term downtrend, people who shorted will hope that the downturn last as long as possible.

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