KLCI still in the downtrend if you ask me. So, is a NO. But for those VERY short term trader, or I say contra players or day trader is still business as usual. For me as a Value investor cum trend trader, is a hands off period and go for holiday. Hmm....maybe I can use this opportunities to sharper my skill as a shorter term trader, but definitely this will come with a price of RISK!.
Last few weeks, I bought SKPetro as quite a few of my "kakis" was mentioning here says her a Index stock and very cheap now. Well, I know that she is in downtrend mode and is not time to go for long term investing , I just go in have a counter trend trade. I went in at 3.16, but she broke my stop loss point of 3.14, thus , I sold her 3.13, in deed she drop further, lowest at 3.04, but after that she rebound back to 3.24. I have no regret, thats what a short term trade is , obey your stop loss. And for those who think is think for investing, she is now drop to 2.82. Wow ! imagine, if I do not obey my stop loss and maybe i hesitate to sell at 3.24, then I'm in a dilemma of trapping at a loss of 10%. Well, if one is to trade and not investing, then the cut loss should be less than 10% as a guide.
Last few days, I was expecting our CI can break the last High around 1858, then we will be on track back to the good old uptrends. See below the chart, our CI has been constraint by the 2 trendlines. Well, for a short term trade, say 2~10 days trade, a good entry point when she rebound around 1806 but the safer point would be 1771 or 1700?. Lets, hope our market would be at 1700, if yes, then the 5 years once big correction or people call it market collapse is formed.
As usual, just remember my disclaimer at the left hand side.
