Tuesday, May 15, 2007

Straight line graphing

I'm fond of straight line graphing. Because its simple. Easy to understand. And most of the time- its right. Check out the two graphs. Chartered and Jurtech.

Of course there will be other charts which will show otherwise. But in share trading, the main goal of the trader, imho, is to protect his capital+profits. If he doesn't do that- then eventually he would have lost the game.

Chartered- it was a great graph last month. Plenty of good volume and support. So I got in at $1.45. But when the MD or CEO came out and said it wasn't involved in any takeover discussions and they had a piss-weak report- bang - should have got out. Trouble was already brewing on the chart- when it deviated from the trend line.

I started selling at $1.43 which was the correct thing to do. Then I got excited by the sudden last push towards $1.45 and got back in again. Eventually, I exited from my positions at the dismal price of $1.34 - left it too late. Its tempting to jump back in at this level $1.26. But for now, I'm leaving it alone. I'd say its a buy if it ever hits $1. But not a stock for long term holding.

Jurtech- seemed quite interesting. I got in at 95 cents a few weeks ago. Straight away it powered to 98 cents and seemed to want to break pass $1.00. It didn't. I bailed at 95 cents, thankfully.

I don't mind holding the stock if it strays away from the straight line uptrend for a day or so- but any longer and I get nervous.



1 comment:

LuckySingaporean said...

YauMing,

Frankly, while technically Jur Tech looks week probably due to the profit decline which is expected, fundamentally I think most investors have missed the bigger picture. While stock may show further price weakness until investors 'get it', I won't mind accumulating the stock at these levels.

There are several reasons:

1. Motorola is turning around which will improve its PCB business.

2. Some of the acquisitions are showing good results and vertical integration + one stop service.

3. There is industry wide weakness rather than specific problems at Jurong Tech which is well managed.

4. The stock is very lowly priced by the market so there is some margin of safety.

At this point, I will call a buy rather than a sell on the stock.