JSPC, When to sell?

JSPC, is almost same case as the LIONIND. Both are penny stocks, and both are dangerous stock in my opinion. The JSPC is reaching its resistance line of 0.20. Can it break the resistance? It is highly unpredictable... The stock has been steadily rising up on a 45 degree trend line, and it is still not obvious that the "manipulator" has shown any sign of wanting to distribute the stock greatly. As with the case for LIONIND, we should have the stock KIV and sell if we able to spot any candle of greed and hope in the future. High volume of the previous reversal point could be serve as a reliable signal to guide our judgment.

Good luck and happy Chinese New Year.

LIONIND, when to sell?

LIONIND, a hot an volatile stock recently, is making its way up to the resistance line at 1.30.It is obvious that the stock now is bullish. And short term trend is up.As shown in the chart, the previous resistance 1.30 is a possible reliable target for us to take profit at around 1.30.However, profit taking decision will be highly dependent on the price action of the stock in a single day with high spike and great volume. Judging from the stock characteristics alone, a sudden high spike with great volume signals a reversal in trend. The resistance 1.30 will indeed serve only as a rough guidance for us to lock in profit by doing partial selling. As the stock is normally correlate to the movement of the wave of penny stock speculations, another factor that will determine when to sell and lock in profit is you need to predict when the wave of penny stock actions will be stopped and reverse.

In short, sell if the price and volume action indicate greed and hope with a spike or a abnormal parabolic rise, or when you feel (as with tech analysis, intuition is important here) the wave of penny stocks will stop. Personally, i am speculating that the wave will last another 2 to 3 weeks, and even it is also possible that it will extend to period after CNY. I have a great preference to sell before CNY and lock in profit, and be free emotionally and enjoy the CNY 2007. Instead, i strongly believe that some profits are not meant to be earned by us in the stock market. These profits are those profits always attractive to speculators in the last wave fop the bull run.

The Next Week...

The trend has been bullish and many people are speculating that the trend will persist through the CNY. I also had been bullish and i am also speculating that my work to be done will be carry forward even after CNY.

More and more unprofitable stocks have been found starting to make a new high and traders are jumping in. Many stocks start looking damn tantalizing and attractive. Technically, at this particular point of time, buy anything that you found it technically relevant. It is the best of the time, and it is also the worst of the time. Volume increases and volatility set in, and in this period of time, you could make money as fast as how you could lost it when the market turn. Players in the market, particularly MESDAW and second board, should be well prepared with a gambler mentality, that are willing to make or die. The main concern is still the divergence of volume in KLCI chart. The second concern would be the boom of plantation stocks, seems to me, is already an overreaction of investors and speculators.

From a fundamental perspective, the index is now fairly priced. And without new dramatic change in the economic environment in Malaysia, any rise in the index could be speculative and dangerous. With an aggregate market PE of 18.4, investors should question if the expected growth rate of the Malaysia GDP (so-called around 6%) able to justify this ratio.

It is indeed very hard, if not impossible to predict the market direction in the future. Technically, a reverse correction should happen (well, this is very subjective). Fundamentally, the index should price at a trading range around 1100 to 1150 (well, this is truly subjective also). Experience wise (which could means that i am seriously suffer from psychological disease such as heuristic representativeness), high volume in MESDAQ and second board means danger and a storm in these market is just around the corner.

There is a need for us to be cautious and start taking profit for these moments, and be safe. Be patient.

Ultimately, it is not the thinking, it is the sitting that earn the money (Livermore). It is now a test for you to sit over the volatile period and patiently wait for the bear to set in...

SMRTECH revisited

After breaking the resistance line as shown, the stock now come to a support line at the previous resistance line. As the fourth wave in the recent bull market coming (to be precise, expecting to come), this stock could become an Ang Pow for all of the traders. As with the case of SCICOM, sudden increase of volatility should be a sell signal.

SCICOM revisited

Volatility again increase, a rise with high volume is a positive signal. This stock now demand high attention form the traders. As i have recommended before, this price is so-called relatively undervalued judging from an unadjusted PE ratio. However, penny stock, particularly MESDAQ stocks, are prone to failure technically or fundamentally. As for those that have followed my previous recommendation, you should consider taking profit in the near term, particularly if the price continue to spike upward due to greed or hope (which i am expecting). Nevertheless, predicting stock prices is ultimately an art more than a science. Traders should make their own decision according to their style of investing.