Trading plan

Here is the trading plan that I made for this past week:

Avoid/Sell holding and industrial stocks.

Buy financial and property stocks for oversold/technical bounce play.

Buy mining stocks for bucking the short/medium term downtrend but be extra careful.
Check for bearish rsi divergences to spot weakness as weakness has already starting to surface.

Take positions in leaders.

MEG in property sector.

NIKL/LC/SCC in mining sector.

General market short to medium term trend is down.

I never took position in MEG but in SMC instead.

I told you so.

I was judging SMC strength the entire time today on to whether I would sell it or not by watching the price action and the 5-minute chart. There seemed little appetite for shares above 178 so I sold mine to lock in profits.

Although there were only few shares asked at 176.50, nobody wanted to take it and everybody was just waiting at 176. This is after I already sold my shares to the market. Then it was bid up at the closing back to 178. But the charts never lie, and I saw a symmetrical triangle on the 5 minute chart breaking down suggesting further decline to 169.50. RSI on the 5-minute chart looks pretty ugly too so I am just simply waiting for it to get oversold before getting back in.

I probably should not add up positions after they gap as I should be looking to "fade" the gap instead.

NIKL seems like it is poised for another correction, probably up to 20.30 before heading back up. 5-minute uptrend line is holding up so far.

A bearish RSI divergence appeared on the daily charts though. However, the divergence happened below the oversold levels so I'll be taking it as a normal correction for the mean time.

SCC just moved sideways today. A convincing break of 203 will point to advance/s in the short term. What I hate with the stock is its ROC is pointing up while its price is simply stagnating at the current levels.

I put up a position in LC today at the closing.

MA and MAB broke out of their consolidation channel. MA closed at its resistance which I believe will not be broken as the RSI reading is already on the overbought levels. The main problem of this kind of issues is they are highly illiquid meaning minimal public participation rendering technical analysis useless as the analysis is used to gauge/predict herd mentality.

It's going to be a different story if both starts to trend up again.

I hate to say this but I told you so. Somebody is shooting his foot in AGI - talking about the short term.

So there. Ending up the week with mining stocks and recovering costly mistakes by playing with the third liners.


**I was also became anxious of closing "weak" positions as my Uncle called me to buy BEL and LND. Somebody who doesn't know how to trade is telling me how to trade. How ironic. Guess what happened to both issues?