Monday, June 25, 2007

Stormy Market; Pennies Shine

Straits Time3580.33-35.05(-0.97%)
SENSEX 14487.72+20.36(+0.14%)
UOB Sesdaq 263.07+1.72(+0.66%)
KLSE Comp 1377.13-14.44(-1.04%)
Nikkei 225 18087.48-101.15(-0.56%)
Hang Seng 21822.35-177.56(-0.81%)
Dow Jones 13360.26-185.58(-1.37%)
KOSPI 1757.73-13.25(-0.75%)
SSEC 3941.08-150.36(-3.68%)

Well, markets around the world are taking a breather now. What STI is experiencing is what I believed to be a 3 sessions consecutive falls or 3 black crows in candle stick's perspective. Tonight, chances are DJ is going to rebound significantly that will trigger a following rebound. STI would probably see a less than 40 points gain. SSEC will continue its uptrend after a few sessions of digestion.

Looking ahead, pennies defying the gravitation effect of market and some took a hefty gain. I sold 8 lots of Oculus at $0.410 in the morning but bought another 8 back after I discern an added interest fueled buy up based on the chart, which was found halted and pending announcement, which is probably tomorrow. Other pennies which I had bought are Sunbusiness or Lexicon 10 lots at $0.095 that found up two bid spots at $0.105, 10 lots of Jade around $0.210, 8 lots of Eastgate at $0.125 which ended flat and 8 lots of ASTI at $0.310 which ended the session at $0.300. Some retreat from my purchases. Still holding on to Yangzijiang, 7 lots which was bought last Friday at average of $1.99. Well, if a recovery is triggered tomorrow, this counter will probably see itself testing its high at $2.07 again. Yangzijiang however is dependable on two factors: one of which is the shipping sector and the other will probably be HSI and SSEC.

ARC Market Pulse Portfolio
Counter Qty Buying Price Current Price Cost Value
GlobalTest 3000 0.25 0.315 776 945
Acma 8000 0.13 0.16 1066.4 1280
Lantrovis 5000 0.175 0.175 901.5 875

I will decide on which of the pennies to hold from the counters which was bought today. But tomorrow's session will be a crucial deciding factor. Things are quite rosy since markets had took their share of corrections for the past few days. Today's disposal of Oculus see at $500 increase in the cash on hand to $2750 after subtracting about $50 loss from Koh Bros. The total value of cash plus investment is now $5850, which was initiated with a modest $3000 starting capital.

On funds end, the slides for these 3 days did not bother much of my funds holding. Average ROI still kept in the 23 - 25% range.

However, I see an opportunity in the money market as GBP/USD is currently at $2 level. Took a $5000, 35 pips stop loss position on USD against GBP. DJ if at all it recover, should send USD back to $1.9900 level. Looking to take profit at around $1.9950. As you known 35 pips cannot really sustain a wave string movement in Forex.

Any opinion herein is made on a general basis and is not an inducement to trade.

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