Friday, May 2, 2008

May-2 13200 is here

I was told that I was a moron and crazy idealist when I said this rebound will actually go to 13200 around end of January. Now it's here. What should we do now? My strategies are different based on your positions.
  • If you 100% long, on every 100 advance of DOW above 13000, reduce 10% of your position until 13500. Then use 13500 as your stop win point for the rest, otherwise, 13000 is your stop point.
  • If you 50% long, one every 100 advance of DOW above 13200, reduce 10% of your position until 13500. Then use 13500 as your stop win point for the rest, otherwise, 13000 is your stop point.
  • If you are empty, buy 30% of your position on Asian stocks and ETFs when you still can, use 5% stop loss if you have good entry price during weekly lows.
Please, do not consider to win on both sides, long and short, this might be too difficult for many people. Frankly speaking, I find it difficult to both long and short stocks, rather I will trade Forex or Gold instead to hedge my stock position. This is not recommend for most beginners.

BTW, I hope you enjoy the ride on ZNH, which surged 9% last night in Hong Kong.

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