Did nothing last night

Good morning,

Yesterday started with a visit to the doctor for my H1N1 jab. I thought the clinic would be packed with people waiting to immune themselves against the flu virus, but to my surprise I had my jab done in 5 minutes. Later in the evening at my bar I was sharing with an In Flight Supervisor from my local airline about the jab and he told me that he had it done in 2 minutes and there isn’t any queue at all. I was expecting the local population rushing to take up the supply of vaccines but it didn’t happen. So why did I rush to have it done? Perhaps it is my stock trading mentality. A good stock trader looks at the past historical records and understands the current situation and bet on his perceived future forecast. I read in the news that H1N1 spread fast previously and it may get worst during the winter season. Though it has not happened, I am sure once the flu season kicks in and if there are reports of wide-spread around the world, many of my country folks will rush to have their jabs, and the stock of vaccines may not be enough. Isn’t it the same the stock market? Traders and investors will rush to buy or sell when there are un-anticipated macros or companies report causing the price to rise. So if a trader can look at the historical past, understand the current situation and market participants’ behaviors and forecasting the future with these understandings, it would be better for him to buy or sell before the market does to maximize the returns.

I am glad that I have no major side effect from the jab except a minor one which I am not sure if the cause is the jab. I did a training seminar last night for my new Investment Advisers and faithfully finished the class just before the markets open. On my way home I dropped by my bar for a glass of my normal dose of merlot. I only had a glass and I was high. This has never happen before so I think it must be the jab effect. So if you are getting yours’, maybe is wise to avoid alcohol after the vaccination. The good thing was there was no buying signal for the selected stocks when I read the technical during my rest before my class, so when I reached home, I just headed straight to my bed and slept through the whole trading session. I was glad I did because the markets were volatile and with the dizzy condition I had I would probably trade with my emotion rather than following the rules of KUTE.

DJIA closed down 11.11% at 10,426.31 and S&P lost 0.05% to close at 1,109.80. The declines outnumbered the advances for the second day in both the NYSE and Nasdaq. Despite the poor housing data, the Dow Jones US Home Construction index added 0.4%, bolstered by a 4% rise in Pulte Homes after an analyst's upgrade. Advances in the financial sector limited the market's decline. The S&P financial index added 0.5%. At the close there were more weaknesses in technology and energy stocks.

Despite my no activity last night, NOV share price moved up, hitting my limits before it declined to close at $45.59, losing 1.17%. So I made good tidy profits while I was sleeping, thanks to KUTE position trading plan. MGLN closed the session at $36.39, down 0.49%. CVX was 0.14% higher to close at $78.92, ESV declined 0.72% at $47.19 and MIR declined 0.61% at $14.57.

I have no more open position with NOV and MGLN so I will be looking at technical today for buying opportunities since the stocks are still above last Friday’s close.

Have a great day!

Francies Cheng
BBus MAppliedFinance