30th August 2006 - A Possible Market Turn ???

Based on my KOSPI system, there should be a turn to the downside for the next 2-3 days. I shorted KOSPI @ 174.75.
Although my system is over 90% accurate and only generate 1 stop loss in 5 years, I have to acknowledge the fact that Nikkei, Hang Seng and SIMSCI ended up strongly nearer to their highs. At the same time, this system is mechanical so taking every trade is necessary for consistent profitability.

Looking at the way the Asian mkts end and the chart patterns in US mkts, the road ahead definitely look bullish. At the same time, if you give it a 2nd thought, if the expected buying doesn't come tonight in US mkts, what will come?

Let's see if it happens?

29th August 2006 - Trading in the Markets

"We don't trade in the markets, we trade in our BELIEFS of the markets"
- Ray Barros

This quote basically summarises what trading really is. Everytime we place a trade, the market moves but do your beliefs of the markets move too?

Hope this spark some thinking for you as it did for myself. Cheers :)

22th August 06 - A Nice Sell-Off

Dear frens,
I haven't been updating the blog recently as I was busy preparing for my 1st Trading Mastermind Programme. It was held last Sat and Sun and I am very excited to have 11 participants this time. What I can say is that they are very commited traders and it was my honour to share my knowledge with them. Believe me, I also learnt a fair deal from them in those 2 days.

Right after the programme, today the market gave a Time-Frame Lag signal. Using that, I made some quick buck from shorting the Hang Seng (from 17,030 to 17,010) in the afternoon session. At the same time, the S&P system also gave a short signal. So, I shorted e-minis @ 1304.50 and just covered it @ 1301.50 and 1299.50.

As you might already realised, all of the Asian regional futures sold past their previous day lows and close below them. As such, I believe that the US markets might follow suit, possibly with DJIA cash closing below 11,317. Well let's see if it happens.

Personally, I have also shorted SIMSCI @ 281.7 today afternoon. Looking at the strong recovery towards the end, I reckon that it might not be a great idea to hold the shorts too long.

To be making $$ consistently in the markets, one have to respect the markets. Doesn't mean you shorted the markets and the markets have to go down for you. Remember, the markets have no obligations to hit your profit levels but have every right to go for your stops. Plan your trade and trade your plan; this is the only way to consistency :)

10th August 06 - The Show Starts in SIMSCI

Yesterday, I managed to close off the remaining E-mini longs at 1285.00 (US$350 profit per contract) before the selling came. Kinda surprised that market sold off that badly especially when Asia and Europe were rallying so strongly earlier. Well, that's the fact of the market. Sometimes, the market just behaves abit weird. Naughty Naughty ... ...

Today is the day for SIMSCI. One day after our National day I was busy shorting SIMSCI. Shorted in the morning @ 292.4 and covered @ 291.3 and 291.6 when regionals threatened to stage a rally. In the morning, my RUSE system signalled a sell and here I go again; shorted SIMSCI again @ 291.5 and later in the afternoon @ 290.5.

SIMSCI ended the day nearer to the low @ 289.4. Tommorrow seems like an interesting day :)

9th August 06 - The S&P Gives $$ Again

Dear friends,
I wasn't posting very actively last week as my girlfriend was in town and I have to spend time accompanying her. At the same time, it's encouraging to see that my blog has a sizable following checking for updates everyday. Thanks for all the nice feedback; definitely motivates me to share more ...

Back to the markets... ... Today, the S&P system gave another buy call. I bought at 1278.00 and cleared some at 1282.00, gaining US$200 per contract. Usually, the S&P system gave profit usually during US session but today the profit came even before the start of the US session. If the US sessions continues the buying momentum from Asian and European session, today we might have a good bull on Wall Street, possibly even testing the 1300 level for S&P. Don't be surprised when that happened, ya?

As of now, I have put in a breakeven trailing stop of 1278.25 for the remaining contracts while I continue to prepare for my Trading Mastermind Programme.

PS: To those upcoming participants, I promise you I will give you trades that can make back your course fee and more. This trade could possibly be enough :)

2nd August 06 - Watch Out for Tonight's Move !!!

Dear frens, did you check out the move in SIMSCI today? A beautiful one-way traffic! I have enough reasons that paints a picture perfect trade in SIMSCI:

1) Furious buying amidst US markets overnight drop (DJIA lost 59.95 pts yesterday night)
2) All Asian markets end either at day high or very near day high
3) SIMSCI hit a K2P buy call and enhanced by the RS+1 pattern (to be shared in Mastermind Programme)
4) There's a buy in the S&P in accordance to our S&P system

For all these reasons, I have bought SIMSCI @ 288.7 and e-minis @ 1277.75. Am looking forward to buying more e-minis later. For those who has learnt K2P, there's an upcoming buy call in the e-minis @ 1285.25 (also fulfilling the RS+1 pattern, slurp slurp).

If the markets does turn against me tonight, I can still put up a KOSPI repair trade (to be covered in Mastermind Programme) tommorow. Cheers :)

1st August 06 - Two Important Dates, Two Trades

Dear friends, there might be two god-given trade opportunities showing up based on two important dates. They are FOMC meeting (on 8th Aug) and National day (on 9th Aug) respectively.

For the FOMC, it appears that the regionals are buying up in anticipation of a possible pause in rate hike this time round. As for Singapore National day, it's evident that there are strong bids absorbing any retracement and rampant bargain hunting.

We've made good $$ when the market sold off after our elections and this time round, I believe there's $$ lazying on the ground. The question is, do you want to pick it up?

How to trade this move ?

Trade 1: I am looking at any buying opportunities in the regionals leading up to 8th August. Potential markets to buy and hold are the stronger candidates namely Hang Seng and SIMSCI.

Trade 2: After 9th August, "buying on the rumour and selling on the fact" should set in and I am looking for shorting opportunities in Taiwan and SIMSCI only if they break previous day low. Remember, don't short when the markets are rising, that's suicidal. Only short on weakness, that's why previous day low must be broken.

Please remember that nothing is certain in the markets so when things doesn't look right, get out of the trade first. Cheers :)