STI

Many people are weary of the new highs that the STI is making but the way i see it, there is not reversal YET. My mentor taught me, " the high can get higher and the lower can get lower " this was illustrated to me very clear in the case of Pearl Energy.

It rocketed up from it's IPO (not sure of the price as it has been de-listed and charts removed) to almost triple its value in a matter of a few months. I thought there was an opportunity to go short but i was immediately slapped on the head by my mentor "u think so easy? U think go up so much mean can short" he proved me right. When the idea surfaced, Pearl Energy was only at $1.6x it went all the way up to almost $2.00 before been bought over by another company. The lesson I want to share is, let the market do what it is suppose to do and only take a position when all our training and gut tells you to.

Where is the STI going, one might ask. I did a simple Fibo extention and the tipping point seems to be at the 2900 region. Personally, I feel one has to be really careful from now till 2900. My "bet" is that there will be a pull back at 2880 to 2900.

When there is reason for market to go down, it is still safe. When there is no reason and the market is charging like no tomorrow, it is likely euphoria has taken over. Dun be mistaken, i am an Eternal Bull but one has to be aware of what is happening. Capricorn Effect seems to be in full swing, however i would think that Dec is a time where the "fun" manager might book some profits before going on an extended holiday. We are no "fun" manager but nothing wrong with cashing those profitable investments/trades and take some money and go spend some quality time with Family and Friends rite :) Huat Arh!!!!