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MarketWatch: Correction could be coming

I’ve mentioned that the divergence was seen on STI since last week and on friday it has followed Hang Seng (breaking out of a symmetrical triangle) to move higher.

During this period, watch out for profit taking session, or at least pocket some for those at resistance turning down and put some at counters at support. Like this, you will be cutting down your risk while still enjoying the potential upside.

Always remember the old maxim: let your profit run, cut your losses short.

Friday was a good run for many stock. Really did not expect the bullishness of the market on Friday. Friday is a very good indicator of what will happen on Monday due to the willingness of trader holding the stock over the weekends. Given my current holding as listed:

  1. Ausgroup (red)
  2. Capmallasia (red)
  3. Tat Hong (green)
  4. StraitsAsia (green)
  5. Seroja (green)
  6. FraserComm (red) – super heartache
  7. Ryobi Kiso (green)

I will be looking at a few forgotten counters to enter at support while divest some while on the up move. Cashout on GoldenAgri on Wednesday due to small holding only.

My friend recommended me to put up a weekly post on “My Mom recommendation” since she’s somehow always able to spot counters poise for big move example GMG (heartache) and Seroja but I was always not willing to enter due to lack of good entry.

I will be looking into the trading framework to reduce portfolio risk. I will take quite some time so keep a lookout for this column.

ANNANDALE, Va. (MarketWatch) — Is it too quiet out there?

After a couple of years of extraordinary volatility on Wall Street, the relative calm of recent weeks might be considered a very welcome development.

But some advisers nevertheless worry that it means the market is overdue for a correction.

The last time the S&P 500 /quotes/comstock/21z!i1:in\x (SPX 1,194, +7.94, +0.67%) dropped by at least 1% in a single trading session was Feb. 23. If today proves to be yet another day without a 1% decline, as indeed looks likely mid-day, it would mean that today is 32nd straight session without this big a drop.

You have to go back to May 2007 to find another occasion in which the S&P 500 index went this many sessions in a row without dropping at least 1% in any given session.

As we know now, of course, May 2007 came just a couple of months prior to the eruption of the sub-prime mortgage mess and the end of the 2002-2007 bull market.

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