Thursday, 12 April 2012

Wallstreet recovers with Dow Jones up 116 points, But I am not that convinced

Dear Friends,

I am tilting towards being more bearish than bullish now. Especially since our NYSE market sentiment indicator tells me that. As we have mentioned, we are looking for the Bearish signal confirmation ever since February. The risk has been high in this overbought situation.

Look at the economical calendar for the first week.
So many reports less than expectations.... See the Red colour figures?

The tide may have changed for the broad market. In fact I would love it if this drop persists. If not, we got no chance to enter, right? I am sure in the last rally, there are still many investors waiting in the sidelines but haven't entered.

If you want to enter a bullish position, my advice is to do a hedging by entering another bearish position. For me, I would still long some Good Stocks that are fundamentally strong. But I would hedge it with a Bearish Position on another weak counter too!

As I have also mentioned, April is earnings season month. Some of our focus will shift to how the companies are doing. At least the market may not drop that bad, if earnings of some major companies this season is good.

However my ADVICE is BE Careful when entering LONG position this month! Lower your position amount. It will not be as good a month to trade compared to Jan and Feb. 

Like what Mr Hu Li Yang mentions, we have 5-7 chances to make $ throughout the year. But I don't think April is not one of the months that can make you Big $!

Being Patient and Prudent is the Key Now!

Rgds
Daniel


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