Our call for a buy 4 days ago could not have been better in terms of timing as the index printed a low of 898.61 on that day before rebounding to surge higher in 4 consecutive days. It is good that we caught the bottom, but we should not look expect to catch it everytime or even most of the time. It is just a bonus and not necessary for long term success. It is more important to trade according to plan as wins and losses are part of process of trading. Well, where do we go from here? In the short term, the index might pause or even retrace slightly after the surge. Second liners will continue to be played up in a rotational manner. Take some profits if you like BUT remember to stay in your LONG position both in stocks and FKLI futures. It is possible that the market is in for a sustained rally after the Chinese New Year. Of course, we would reevaluate this statement as we gather more information. For now, STAY LONG.
I also take this opportunity to wish all readers a healthy and prosperous Chinese New Year. I have also decided to make an effort to do some charity this year. There is a "Paypal Donate" button on the right column below the "Blogger" button. If you like what I do in my blogs here or you are simply in a charitable mood and would like to make a donation, you are most welcome. My vow is to donate to charity 80%
of what I collect from the "Donate" button from now until the year ending 31st Dec 06. This would be done annually as long as the total amount collected is at least USD100, or until I state otherwise in this blog. You can donate whatever amount you wish. It is perfectly OK if you do not wish to donate. It is up to you. The amount donated and the recipient will be posted in this blog within 1 month of each year end. Thanks!