I think it is important to know that as the market goes higher, the risk is getting higher too. And so we should trade stocks in a shorter term bases (Short term means between the month latest not more than two months). Cup-with-Handle Trade seems to be the way to go.
The cut loss point is short for Cup-with-Handle. Any change in market condition, we are out. The losses are kept in minimum.
FTSE = Bullish DAX = Bullish (It was Neutral last week)
HANG SENG = Bearish SHANG HAI = Bearish NIKKEI = Bearish SEOUL = Bearish STRAITS TIMES = Bullish TAIWAN WEIGHTED = Bearish KLCI = Bullish
It is obvious that Asian markets are in bearish except Straits Times (Singapore) and KLCI (Malaysia). While US market and Europe markets are all bullish. As long as the major market ; US and Europe are doing fine, we are OK.
No body knows for sure the direction of KLCI or the entire markets. The best think to do is to rely on technical analysis. In this case, I would use GPMMA of closing over for direction; bullish when closes above and bearish when the blue lines (5 lines) drop below the 5-red-lines (entirely not partial blue lines).
KLCI closed at 1626.38 on Friday 13 July 2012. The blue lines stayed well above the 5-red-lines indicating that the market is still bullish.
We have to constantly monitor KLCI and the rest of the indexes including the global ones like Dow Jones, Heng Seng, Shang Hai and Dax etc. for direction based on GPMMA.
Take good care of the downside and the upside will take care by itself.
I think it is important to learn to be independent. I totally can understand how every one feels after the course. I felt loss, I felt directionless and I felt restless. I guess we just have to start one step a time independently looking for stocks, analysing the markets and taking baby step to buy stocks we think they are the right ones (whether based on GPMMA closes over or Cup-with-Handle etc.). I am doing it now. That is why I started this site to help me to focus and make progress in the process.
It is obvious that the markets are in neutral. Some are bullish and some neutral. There are only two markets in Asia are in bearish mode. It is important to watch closely for now since the market has been up since 2008.
My Suggestion: I attended a market talk by one of the local investment banks, they were very bearish about the markets; the whole markets based on Elliot wave theory. I am kind of drawn into believing the theory. Then what should I do? Sell all the stocks? Well, the best thing to do, I think, is to watch closely with the charts, all the major indexes of the world on GPMMA. I will get ready to sell all my stocks when GPMMA of KLCI closes below. I guess you all know what it means by "GPMMA closing below".
OLDTOWN (5021) closed at RM1.75 with the high of RM1.78 which was higher than the previous high of 1.77 indicating the bullishness of OLDTOWN.
I would not buy the stock now, of course since it has been up. Instead, I would wait for the correction, a least cheaper than current price to buy in. I guess the best bargain would be the time when the price down to the red lines area (refer to chart).
What do you think?
We could use Cup-With-Handle method, but there would not be much meat. Well, it did not 'qualify' our Millionology Cup-With-Handle conditions anyway.
Note: OLDTOWN is one of the top pick for longer term investment by GrandPine.
GPMMA of KL Composite Index turned bullish after the blue lines ( 5 lines ) totally closed over the red lines ( 5 red lines ) on 15 June 2012 of which KLCIndex closed at 1579.23. And now KLCI closed amazingly on 163.75. KLCI is bullish.