Tuesday, July 31, 2007
Monday, July 30, 2007
Challenging Times
The weakness in the US markets last week has affected the trading "spree" in Penny Stocks over here in Singapore.
On a personal note, I have already entered some positions in Adv Sys Auto (Disclaimer: This is NOT a recommendation to buy this counter. Please seek proper advice from your own Licensed Advisor, or do your own due diligence or research), with my CPF funds.
I believe the penny stocks will consolidate awhile, before certain counters starting to lead the way again...
On a personal note, I have already entered some positions in Adv Sys Auto (Disclaimer: This is NOT a recommendation to buy this counter. Please seek proper advice from your own Licensed Advisor, or do your own due diligence or research), with my CPF funds.
I believe the penny stocks will consolidate awhile, before certain counters starting to lead the way again...
Wednesday, July 25, 2007
2 Full Day Seminar on the 25th & 26th July
Am involved in a 2 Full Day Seminar starting today - This is related to my day job. So I will not be posting any of my observations until Friday. Cheers!
Tuesday, July 24, 2007
Liang Huat: Is This Breakout Convincing Enough?
Personally, I would keep watch of the PRICE action, after today's breakout.Progress of Hyflux's PRICE Action
PRICE of Hyflux needs to break the $3.32 level convincingly, in order to head higher...SemCorp: Breakout
Those of you tracking this conglomerate will be glad to know that it broke out yesterday.Multi-Con System
Multi-Con System's PRICE action continues to look weak. I would seriously stay out of this counter. Today's low of $0.38 has effectively closed the gap formed last week.
SSH Corp's First Target Price of $0.495
As posted yesterday, SSH Corp's first target PRICE of $0.495, has been it today...
Liang Huat - A Breakout Today
Will post the chart of Liang Huat later this evening...It did a breakout today. Breakout PRICE is $0.06, so Trendline Support is at $0.055.
TREND Chart of the Hang Seng Futures
Here's the TREND Chart of the Hang Seng Futures. Isn't it lovely? Higher Highs & Higher Lows...The Bull TREND is very much intact.
Monday, July 23, 2007
SSH Corp
I featured this counter's PRICE action on the 15th of Jul. Today, it is continuing its move. Next target PRICE is $0.495
Patience, My Friend, Patience...
Again, I reiterate my stand to just wait for a clearer picture, before talking my next step. Having got out of Global Test & Adv Sys Auto last week, I am now just waiting for an opportune time to re-enter the market. Of course, you will still have the occasional counter (like Aztech, today), attracting attention but overall, for now, I feel it's best to just sit out, and wait.
Saturday, July 21, 2007
This Weekend's Featured Article
Dan Zanger's 10 Golden Stock Rules & Trading Tips
Notice: My web site and its methodology work best for those people that can act promptly and without hesitation executing the golden rules and general notes listed below. It is also for those that are preferably on real-time quotes. Many stocks are listed in the nightly newsletter and only those that move quickly, on heavy volume, through the trend lines and buy points, should be considered.In addition to these 10 rules, please see notes below: And if you are new to trading or investing please see the paragraphs with the * at the bottom.
1. Make sure the stock has a well formed base or pattern such as one described on my web site and can be found on the tab "Understanding Chart Patterns" on the home page, before considering purchase. Dan highlights stocks with these patterns in his newsletter.
2. Buy the stock as it moves over the trend line of that base or pattern and make sure that volume is above recent trend shortly after this "breakout" occurs. Never pay up by more than 5% above the trend line. You should also get to know your stock's thirty day moving average volume, which you can find on most stock quote pages such as eSignal's quote page.
3. Be very quick to sell your stock should it return back under the trend line or breakout point. Usually stops should be set about $1 below the breakout point. The more expensive the stock, the more leeway you can give it, but never have more than a $2 stop loss. Some people employ a 5% stop loss rule. This may mean selling a stock that just tried to breakout and fails in 20 minutes or 3 hours from the time it just broke out above your purchase price.
4. Sell 20 to 30% of your position as the stock moves up 15 to 20% from its breakout point.
5. Hold your strongest stocks the longest and sell stocks that stop moving up or are acting sluggish quickly. Remember stocks are only good when they are moving up.
6. Identify and follow strong groups of stocks and try to keep your selections in the these groups
7. After the market has moved for a substantial period of time, your stocks will become vulnerable to a sell off, which can happen so fast and hard you won't believe it. Learn to set new higher trend lines and learn reversal patterns to help your exit of stocks. Some of you may benefit from reading a book on Candlesticks or reading Encyclopedia of Chart Patterns, by Bulkowski.
8. Remember it takes volume to move stocks, so start getting to know your stock's volume behavior and the how it reacts to spikes in volume. You can see these spikes on any chart. Volume is the key to your stock's movement and success or failure.
9. Many stocks are mentioned in the newsletter with buy points. However just because it's mentioned with a buy point does not mean it's an outright buy when a buy point is touched. One must first see the action in the stock and combine it with its volume for the day at the time that buy point is hit and take keen notice of the overall market environment before considering purchases.
10. Never go on margin until you have mastered the market, charts and your emotions. Margin can wipe you out.
Note: If you are new to trading or investing, I suggest reading these rules many times over until they become ingrained so you can act without emotions.Stocks that breakout and move up with tremendous volume and close near the highs of the day seem to work out best. However many stocks that move up 15% or more on breakout day often fail. You'll just have to watch your stock's action like a hawk and get to see and understand these things over a long period of time. If trading were easy everyone would be making millions. It's not; it takes years and years of hard work and long hours.Many traders employ a half hour rule, meaning that for the first half hour of the day many traders do not buy any stock that gaps up in price. If the price holds after the first half hour then often many traders will step in a buy the stock. I find this rule works good after the market has moved up for few strong weeks and is not very effective at the start of a new strong move.If it's earnings season then it's an absolute must that you know the date that your company reports its earnings. Many traders prefer to be out 100% before a company reports its earnings in case the company misses its earnings or guides lower. Others I know reduce positions substantially before earnings are released to lower risk. The choice is up to you. You can see an earnings calendar on my web site by clicking on the icon Useful Stock Recourses. Please verify this information by calling the company or visiting the company's website which you should be able to find in any search engine.*The market moves in waves that can last anywhere from weeks to months. Then a correction or setback starts, which can last anywhere from 5 to 8 weeks or even as long at 4 to 6 months.
If you are starting a free trial and are a novice you may be lucky to join just as the market gets underway, in which case you will see the full power of charting. If however you start after the move has been going for sometime then things won't look as good as traders are paring down positions. Or even worse the market could be selling down hard and working off the prior up move in which case you will be completely discouraged. The power of charts is through waiting for the correction to end whereby the chart patterns will then be fully developed. After weeks of base or pattern building, stocks will begin to lift off and that's when the big rewards come in. The question is, are you willing to wait and be here for the start of the next big move? The biggest mistake a novice can make is to come back after a move has started.
*Please read a few times my interviews in Stocks and Commodities and Traders' Magazine at the top of the home page of my web site. There are many tips and how - to's that will greatly improve your ability to understand how this works.More good comments can be found in the FAQ section of my web site in the member login area.I give setups of stocks that are ready to potentially move. That's my job. Your job is to get to know the stock and its movement along with the general market each day. You are the only one that can do this in realtime during market hours. Then if a stock acts well (i.e. volume is very heavy and the stock is moving easily out of the base) then that is the one to buy. I do not buy most stocks that breakout as most do not meet my heavy volume/price action behavior during the day. Also, I buy only the most expensive stocks as the percent loss is least if the stock pattern fails. High priced stocks are the best quality stocks as a general rule in playing the market. Remember to buy as close to the trendline as possible and the volume should come in at least 10 to 20 minutes after you buy (or even earlier) and if not by then, you know no one wants the stock and might as well check out early.
Dan Zanger has his own website. He offers a Free 3 Week Trial on his services - No Credit Card needed. For more information of the Free 3 Week Trial, click HERE.
Notice: My web site and its methodology work best for those people that can act promptly and without hesitation executing the golden rules and general notes listed below. It is also for those that are preferably on real-time quotes. Many stocks are listed in the nightly newsletter and only those that move quickly, on heavy volume, through the trend lines and buy points, should be considered.In addition to these 10 rules, please see notes below: And if you are new to trading or investing please see the paragraphs with the * at the bottom.
1. Make sure the stock has a well formed base or pattern such as one described on my web site and can be found on the tab "Understanding Chart Patterns" on the home page, before considering purchase. Dan highlights stocks with these patterns in his newsletter.
2. Buy the stock as it moves over the trend line of that base or pattern and make sure that volume is above recent trend shortly after this "breakout" occurs. Never pay up by more than 5% above the trend line. You should also get to know your stock's thirty day moving average volume, which you can find on most stock quote pages such as eSignal's quote page.
3. Be very quick to sell your stock should it return back under the trend line or breakout point. Usually stops should be set about $1 below the breakout point. The more expensive the stock, the more leeway you can give it, but never have more than a $2 stop loss. Some people employ a 5% stop loss rule. This may mean selling a stock that just tried to breakout and fails in 20 minutes or 3 hours from the time it just broke out above your purchase price.
4. Sell 20 to 30% of your position as the stock moves up 15 to 20% from its breakout point.
5. Hold your strongest stocks the longest and sell stocks that stop moving up or are acting sluggish quickly. Remember stocks are only good when they are moving up.
6. Identify and follow strong groups of stocks and try to keep your selections in the these groups
7. After the market has moved for a substantial period of time, your stocks will become vulnerable to a sell off, which can happen so fast and hard you won't believe it. Learn to set new higher trend lines and learn reversal patterns to help your exit of stocks. Some of you may benefit from reading a book on Candlesticks or reading Encyclopedia of Chart Patterns, by Bulkowski.
8. Remember it takes volume to move stocks, so start getting to know your stock's volume behavior and the how it reacts to spikes in volume. You can see these spikes on any chart. Volume is the key to your stock's movement and success or failure.
9. Many stocks are mentioned in the newsletter with buy points. However just because it's mentioned with a buy point does not mean it's an outright buy when a buy point is touched. One must first see the action in the stock and combine it with its volume for the day at the time that buy point is hit and take keen notice of the overall market environment before considering purchases.
10. Never go on margin until you have mastered the market, charts and your emotions. Margin can wipe you out.
Note: If you are new to trading or investing, I suggest reading these rules many times over until they become ingrained so you can act without emotions.Stocks that breakout and move up with tremendous volume and close near the highs of the day seem to work out best. However many stocks that move up 15% or more on breakout day often fail. You'll just have to watch your stock's action like a hawk and get to see and understand these things over a long period of time. If trading were easy everyone would be making millions. It's not; it takes years and years of hard work and long hours.Many traders employ a half hour rule, meaning that for the first half hour of the day many traders do not buy any stock that gaps up in price. If the price holds after the first half hour then often many traders will step in a buy the stock. I find this rule works good after the market has moved up for few strong weeks and is not very effective at the start of a new strong move.If it's earnings season then it's an absolute must that you know the date that your company reports its earnings. Many traders prefer to be out 100% before a company reports its earnings in case the company misses its earnings or guides lower. Others I know reduce positions substantially before earnings are released to lower risk. The choice is up to you. You can see an earnings calendar on my web site by clicking on the icon Useful Stock Recourses. Please verify this information by calling the company or visiting the company's website which you should be able to find in any search engine.*The market moves in waves that can last anywhere from weeks to months. Then a correction or setback starts, which can last anywhere from 5 to 8 weeks or even as long at 4 to 6 months.
If you are starting a free trial and are a novice you may be lucky to join just as the market gets underway, in which case you will see the full power of charting. If however you start after the move has been going for sometime then things won't look as good as traders are paring down positions. Or even worse the market could be selling down hard and working off the prior up move in which case you will be completely discouraged. The power of charts is through waiting for the correction to end whereby the chart patterns will then be fully developed. After weeks of base or pattern building, stocks will begin to lift off and that's when the big rewards come in. The question is, are you willing to wait and be here for the start of the next big move? The biggest mistake a novice can make is to come back after a move has started.
*Please read a few times my interviews in Stocks and Commodities and Traders' Magazine at the top of the home page of my web site. There are many tips and how - to's that will greatly improve your ability to understand how this works.More good comments can be found in the FAQ section of my web site in the member login area.I give setups of stocks that are ready to potentially move. That's my job. Your job is to get to know the stock and its movement along with the general market each day. You are the only one that can do this in realtime during market hours. Then if a stock acts well (i.e. volume is very heavy and the stock is moving easily out of the base) then that is the one to buy. I do not buy most stocks that breakout as most do not meet my heavy volume/price action behavior during the day. Also, I buy only the most expensive stocks as the percent loss is least if the stock pattern fails. High priced stocks are the best quality stocks as a general rule in playing the market. Remember to buy as close to the trendline as possible and the volume should come in at least 10 to 20 minutes after you buy (or even earlier) and if not by then, you know no one wants the stock and might as well check out early.
Dan Zanger has his own website. He offers a Free 3 Week Trial on his services - No Credit Card needed. For more information of the Free 3 Week Trial, click HERE.
Friday, July 20, 2007
A Mixed Close
Today's session closed rather mixed, especially for the Penny Counters. Quite a few of them closed off their highs of the day.
Give it a few more days. Because I personally feel that by then, the tone will be set for either more solid gains, or a possible further correction of sorts.
Be patient and let the market, or PRICE tell us.
Give it a few more days. Because I personally feel that by then, the tone will be set for either more solid gains, or a possible further correction of sorts.
Be patient and let the market, or PRICE tell us.
Achieva
For Achieva, the indicators are a tad bit overbought, but as you know, a stock can stay overbought, as long as its PRICE doesn't show a change in direction. All it needs to do is consolidate for a while, before it starts to move again. It's PRICE movement is key.On the other hand, it can also just spike up from here. Honestly, it's anyone's guess, at the end of the day.
Ban Joo
I like Ban Joo's chart purely because the indicators are deeply in oversold territory. But more importantly, PRICE will determine the next move. Will keep a look out for a bottoming of the PRICE. Like I said the other day, PRICE movements in the next few sessions will give us a better idea of what is to come.Thursday, July 19, 2007
Market Resilience
Was rather surprised by the resilience of the penny counters today. Quite a few of them actually bounced off their day's lows to post some very good intraday gains. I've singled out 2 counters for close scrutiny, namely Ban Joo & Achieva. Will post their charts later...
AddValue Tech's PRICE is Back to the Level it Broke Out From
AddValue Tech's PRICE has gone back to the level it orginally broke out from. Will have to see what holds for this counter, in the next few trading sessions.Japan Land's Chart Still Looks Okay
Still looks okay. It probably needs just a few sessions to sort out the bottom, before challenging the recent high of $0.19Wednesday, July 18, 2007
Ugly. Simply Ugly - Except for Hyflux
And I'm not talking about Ugly Betty. A lot of the penny stocks charts were badly " damaged " by today's actions. Would probably need a few sessions to get a clearer picture. All said, it doesn't mean that all is doom. Some counters may face a slight retracement whilst others will lose more ground. The market will need to clear some back-log, before action comes rolling back again.However, one of the counters that was totally unfazed by what happened today is Hyflux. It looks like a Bull Flag is forming. I'm watching this counter closely.
Just "Irrational Exuberance", Hitting A Brick Wall
Well, the "irrational exuberance" on certain stocks (the last few weeks) finally caused a Sell-Down contagion effect on the rest of the market. Will scan through the charts to see what the impact is like, to some of the counters that were badly hit today.
Sea of Red
Was out since 11:30am & just step back into the house...All I see is a Sea of Red on my PC's monitor....What happened? A sell off in penny stocks? Am trying to confirm the actual events, leading to this occurrence, with my broker friend.
In a situation like this, I always remind myself: DO NOT REMOVE OR ADJUST MY STOP LOSS PRICE.
Teledata - Will Only Enter On a Break of $0.105
Some activity today on this stock, but I'm not in a hurry to enter as it is still within the trading range of $0.065 & $0.105. Will only go LONG with a touch of $0.11.
Tuesday, July 17, 2007
Memory Devices Seems To Have Bottomed at $0.24
Some activity today on this stock...$0.24 could well be the bottom.
Media Ring - The "Former" Darling...
Media Ring's PRICE has dropped out of the triangle formed. Does look very bearish. The breakdown level is at $0.39 & personally, I would be getting out on any PRICE retracements up to the $0.39 level. PRICE looks to be heading down to test levels $0.31, $0.305 & $0.275.
Monday, July 16, 2007
Singapore Stock: China Paper - A Change in Fortunes, Perhaps?
I'm keeping a closed watch on this one - A Breakout from the sloping Trend Line. Breakout level is at $0.315 with Support at $0.31. PRICE has been making higher lows at $0.265 (Mid May) & $0.285 (Early Jul). PRICE targets would be $0.335, $0.38 & $0.40.Singapore Stock: ABR Holdings
Another Breakout story by ABR Holdings - A stock that used to trade above a $1.00. Breakout level is at $0.285. I believe PRICE is heading up to challenge $0.47, $0.525 & $0.58 - Not all at once, of course...
Singapore Stock: AddValue Tech's Breakout
AddValue Tech did a breakout today. Breakout level is at $0.14. There was a "mini false breakout" last week but today's looks like the real deal. Personally, I would accumulate on weakness. Initial PRICE target I am looking at is $0.18, followed by $0.195. A good STOP LOSS level would be at $0.115.Bullishness Abound For Jade, Baker Tech, ALANTAC etc
What a day! Looking at some of the stocks in the top 30 volume, one would think that these counters have gone berserk! Gains were in many fold as 52 week highs were clearly challenged & broken. Will other second-liner penny stocks follow suit? After all, it's a Bull market...
Sunday, July 15, 2007
Singapore Stock: SSH Corp - Bullish Breakout at $0.395
Another Bullish Breakout by SSH Corp on Thursday. Breakout level is at $0.395. First target of $0.44 was hit on Friday's trading. Next potential target is at $0.495. My conservative STOP LOSS level is at $0.375.Singapore Stock: Hor Kew - Bullish Breakout....Again
One can't help but to see the Bullishness in this stock. For 3 times in a row (Last Fri, inclusive), since Mid Jun 2006, the stock consolidated for a while, and broke higher. Will the Breakout this time fail, or will it head higher again? I would put my STOP LOSS at $0.305, if I am riding this baby for more upside gains.Friday, July 13, 2007
This Bull Never Ceases To Amaze Me
I've learnt, in the last 2 1/2 years, from the work of my Mentor, & his method of trading, is that you always need to confirm a Top/Bottom. I believe recently, one would have been bombarded from all quarters, "experts" calling for a market top - but from my charts, it says otherwise (we just cleared last Resistance of 1554.25, on the SWING Chart, making a new high at 1559.00, at the end of last night's US trading session).And in my Mentor's famous words:
" We Trade PRICE...And PRICE will continue to go up/down, until it fails. Trade with the TREND. Don't fight it. "
Thanks, Bill...
To know more about my Mentor & his work, head over to my Futures Trading Blog for the link...
The chart above is my SWING Chart of the ES (S&P e-Mini Futures Contract)
Thursday, July 12, 2007
Singapore Stock: HengXin Tech
Am watching this counter closely. Including yesterday's low of $0.385, there has been 5 PRICE matches altogether, at this PRICE - clearly a sign of weakness/indecision, trying to go lower.
If PRICE is able to trade above $0.41, then it would signal the first indication of a possible change in TREND, in PRICE. A long at this level of $0.39 - $0.395, with a STOP Loss at $0.36 is the other alternative.
If PRICE is able to trade above $0.41, then it would signal the first indication of a possible change in TREND, in PRICE. A long at this level of $0.39 - $0.395, with a STOP Loss at $0.36 is the other alternative.
Singapore Stock: Hyflux - Breakout
The above is yesterday's end of day chart of Hyflux. Currently, at 10:35am, Singapore Time, Hyflux is trading at $3.12 (up $0.15 from yesterday's close), off from its day's high of $3.18. Clearly, it has broken out of the Rising Wedge. It is not uncommon for the PRICE to come back down, to challenge the breakout level at $2.96. However, there is also the possibility that it may not even head back down to the breakout level. Personally, the initial PRICE target for this upmove is $3.18 (which hit just now), $3.80 & then the all time high of $3.98Wednesday, July 11, 2007
Singapore Stock: GLOBAL TESTING - A Possible Low at $0.315
A possible PRICE Low at $0.315. Does look like PRICE is heading back up to test $0.36, then $0.39Tuesday, July 10, 2007
Singapore Stock: Update on ALANTAC
I've been out the whole day seeing clients, and did not get a chance to see the market. Now, sitting in front of my PC, I see that ALANTAC has gone BONKERS !! It touched a low of $0.30 in the morning and it has closed at $0.36 !! It hit a low of just $0.22 when I first spotted it last Thursday and now it has closed at $0.36. That's almost a 64% gain just over 4 trading days !
And the worst thing of it all ? I did not buy this stock !
And the worst thing of it all ? I did not buy this stock !
Monday, July 9, 2007
Singapore Stock: Target PRICE Levels for ADV SYS AUTO
Initial PRICE target of $0.10 has been hit. Subsequent PRICE targets are $0.12, $0.14 and $0.15. The "biggie" is at $0.185.
Singapore Stock: Memory Devices
Memory Devices is another counter I am watching very closely. PRICE could be bottoming here, with the Higher High (HH - $0.295) and possible Higher Low (HL - $0.25) forming. A change in TREND will be the case if PRICE trades above the Higher High (HH) of $0.295Singapore Stock: Update on ADV SYS AUTO
My observations proved correct, for Adv Sys Auto. PRICE hit a high of $0.105 and volume is pretty decent too. Will have a look at the charts again to see where, is the next PRICE target.
Singapore Stock: ALANTAC - Surpassed All Expectations
Was out and didn't manage to catch the market opening & PRICEs but WOW...!! ALANTAC definitely surpassed my expectations. Not only did it clear $0.285, it went up further to hit a high of $0.32 !
Sunday, July 8, 2007
Singapore Stock: HengXin Tech
Personally, I would keep a close lookout for the PRICE action of this stock. If PRICE is able to trade above $0.42, it would signal a change in TREND. Even with that in mind, I would still put a tight stop-loss at $0.38.Saturday, July 7, 2007
Update on Singapore Stock: ALANTAC
Yesterday's trading action showed the stock's strength. Hitting a low of $0.22 in the morning, the stock rallied in the afternoon, reaching the PRICE targets of $0.24 & $0.255 as mentioned in my post yesterday. Next PRICE target is $0.285Friday, July 6, 2007
Singapore Stock: ADV SYS AUTO
This Stock hasn't broken out yet but I like the PRICE movements - Higher Highs & Higher Lows. Keeping a close eye on it though. Am personally vested (small amount) at $0.08.Singapore Stock: ALANTAC
ALANTAC is another stock that Broke Out of the Channel. Initial Support for retracement is at $0.215. My personal view is that the intial Price Target is $0.24, followed by $0.255 & then $0.285.Singapore Stock: IPC CORP Ltd
For my Singaporean readers, here is one stock that did a Breakout from a sloping Trendline. Personally, I am looking at initial PRICE Targets of $0.23, followed by $0.265.
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