No 3 No 4 ?

I haven't been trading actively since my last posting to share with you how to watch out for the "stars". 

For the last 2 weeks, the market was probably in a no 3 no 4 (不三不四) situation where it was neither going up nor breaking down. It is basically in state of confusion and in a limbo until we can see a clear winner between the bulls and the bears. I will probably continue to stay on the sidelines until i can see trades that give me a better risk-reward ratio.

Straits Times Index

Let's do a quick recap on STI. My previous post was here. 3088 seems to be a nice 4-D number and a pretty strong resistance. It seems unclear whether STI is going to break above 3,090 to resume its bull run or consolidate sideways and form a double top but i will watch the show from the sidelines. 

Ezion

Ezion seemed to be undergoing a correction after its strong run up. It has almost doubled in price 4 months! What a spectacular run. Traders who are keen on this sector can probably wait for the correction to finish its course before getting back in again.  I think it will likely do a correction in the coming days.

STX OSV

Very interesting counter. I am interested to buy this for my SRS portfolio but the major shareholders are  'selling real hard'. I will see how this goes.

Olam

One reader asked for my view on Olam. I think Olam is trading sideways with downward bias  towards the $1.90 level. No change to my earlier views. 

It is always difficult for me to give a view because I am unable to advise on your own risk tolerance and investment horizon. I will share a topic on risk and reward next time. You have to know your own risk and reward each time you enter a trading position. If the risk versus reward is not good, then just give it a miss. I see some traders risking a large amount of capital for a small profit (example buying 500 lots for a 2 bids movement). Well my only kind advice is that make sure you can cut loss before you move to this level. This "level" is for the 'professional' scalpers who can monitor the market closely. It will not be suitable for traders with limited capital outlay or traders who have difficulty cutting losses quickly.

Happy trading.