For this week, my advise is to go into safe stocks or play intraday or go for short play before Wednesday where there is a German Constitutional Court Ruling on Eurozone bailout programmes. But of course, I would feel that Germany would come to a positive conclusion for this ruling as any negative results would affect the german elections that is going to happen next year.
But the big moment comes on Thursday when Ben Bernanke will talk about the possibility of QE3 again. Bear in mind, this time round the expectations are raised after last week run-up. In fact last week's Non farm payroll did not meet the expectations and came in bad! However Dow still closed in the green, where the market thinks the worse the jobs the better.
So it will be a tough job on Ben Bernanke now. He better gives us the "hope" of QE in the next 2 months.
My trading strategy for this week:
1) Look at safe stocks where it may not be as bad if there is any disappointment in the market this week. (or don't go in)
2) For Singapore stocks, you may want to take a look at Liongold, Starhub and Asiasons, which I consider as relatively safe stocks. (Long term wise, First Resources and and China Minzhong are some companies you want to watch...)
3) By the way, did you remember I recommended a stock called Ezion, telling you to switch Sakari for it 2-3 weeks back? I have already profited from the run-up... I know that some of YOU are hot on this stock, but just be careful now! If you want to enter now, might be already a bit late. There will be multiple resistances at $1.2, $1.25 and $1.30 now. Let it rest for a while...
It will have difficulty getting past $1.30. It needs a rest! In fact, last Friday, I already profit take... Do not be the last person to be caught among the hype now.
4) I know some of you are bullish on iphone 5, but I am hoping for a disappointment on the product launch on Apple iphone5 on 12th Sep Wed. Yes u hear me, I know I have been bullish on this stock, but on wednesday I hope it disappoints so that I can have a chance to short the stock down intra day. Wait for it to consolidate and have a run-up to the retail launch on the 22nd Sep (to be confirmed). Of course I will be standing by closely to hear what Tim Cook, the CEO has to say.
I do not think that iphone 5 will have any special functions btw, so unless Tim Cook reveals some other products, I am looking at a disappointment from the market.
5) I will be liquidating all my short term bullish positions by wednesday in preparation of the Europe and US agenda.
6) I hope Ben Bernake disappoints the world so that I can short SILVER or GOLD down. Did u see the magnificent rise in SILVER (SLV). So delicious. Yummy.
Btw, I still have to say that mid to long term wise, any drop in prices offer us the chance to accumulate our positions. Some trading strategies I illustrated here is short term.... and based on certain assumptions. Do have a plan B if it occurs otherwise...
Good luck trading!