Monday, May 15, 2006

15th May 06 - The Great Sell Off in Asia

Today is a Monday to remember for long time to come. Never have I seen SIMSCI shed 11pts and Hang Seng tanking more than 500pts in a day. Well, it came as a surprise though as I anticipated a recovery.
In total, there are 3 trades for today. I went SHORT on Taiwan @ 299.9 early in the morning due to general weakness in the Asian regionals. The original plan was to position this trade till the end of the session, targetting a 3-4pts profit. Only managed to see 299.0 low as bids swarmed in to support the market. I got out @ 299.8, slightly above breakeven as regionals gradually recovered and I don't want to bang too much on HOPE mode. Whenever I am in HOPE mode, I get out of a trade. Anyway, there's always a good trade lying around :)

Next up, seeing the recovery, I went LONG on Hang Seng @ 16,528, supported by recovery in Nikkei & KOSPI. The market showed much reluctance to go up and every down move is fast and furious. At that instance, you can really 'feel' the lack of willingness to buy up ...If it's supposed to go up, then why is it not even showing that on the charts? The charts don't lie .... The sell-off will come in a matter of time, thus I got out @ 16,530, making sure I don't lose. And you know what, after getting out, the market only managed to inch up to 16,538 before closing for lunch. After lunch, you saw it for yourself, the great sell off came. Can this move be predicted? You bet ....

Finally, the last trade that made a decent sum. Shorted Nikkei @ 16,415. Machinery reports came out and disappoint the traders. Wham, Nikkei lost 70pts of ground in that minute. Covered my contract @ 16,360. Fast and dirty ....

A pity I got nothing from the afternoon sell-off as I was in a meeting. Well, the market has no short of profitable opportunities. To summarise, 3 trades, 2 breakevens and 1 winner, a reasonable 240USD paycheck from the market :)

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