Meeting old school mates

Good morning,

It was a great night meeting old school mates over drinks and reminiscing our good old school days. Its’ been more than 22 years since I last met most of them. It was a very happy occasion and we just drink and chat, remembering our bonds in the past and forgetting the clock in the present. So I missed the trading session because of the occasion and well, from having too much wine, again. The only thing I could remember was taking a taxi and when I opened my eyes it was my laptop beside my bed (not my wife…she’s flying….”smile”) with my trading platform turned on and the screen showing the sea of reds.

I switched to Yahoo finance investment market overview page and this is the first few sentences that read; “4:30 pm: Stiff selling on heavy volume came as the greenback spiked against foreign currencies and financials faltered. Stocks now head into Friday with a week-to-date loss of nearly 1%.” Should I be happy that my forecast for the week is correct? No, I really wish I was wrong because I do hope that the market can continue its bull run. I am glad KUTE has predicted the markets to be trading within a broad range and closing flat with the downside possibility, and the recommendation was to buy stocks at dip and sell at targets. Since most of the stocks were purchased according to the tactical strategy mentioned in the last few blogs and sold off at the targets, I have no trading position last night except DOX and did no trade for the entire session. I am still holding to my Citigroup’s position though and losing more than I have expected. I will continue to wait for the stock to appreciate since the stock is in my 30% of my 30-20-50 rules. The only comfort I have from holding this stock is reading from the papers that GIC lost 4% from their Citigroup's holding and in terms of absolute dollars, mine losses are peanuts.

NOV closed 0.91% down at $44.45, DOX lost 0.84% to close at $27.23, NE down 2.59% at $40.99, TDW down 0.77% at $46.34 and FCN closed at $45.83, down 2.03%. On the weekly basis, NOV was $43.94 at last Friday’s close ($44.61 at Monday’s open), TDW was $44.18 (Monday’s opening $44.52), NE was $40.40 (Monday’s opening price $40.69), FCN was $46.20 (Monday’s price $46.12). So far so good for the stocks selected by KUTE for the potential weekly gains and I hope that it can fulfill the forecasts after the session closes tonight.

I will have another party tonight so I will not be sitting in front of my trading desk. However I noticed that NOV’s weekly cycle trend has not change, and the weekly intra-week and daily candle forming a doji, I may place a buy order at 0.5% below last night’s closing price to buy.

Have a great day.

Francies Cheng
BBus MAppliedFinance