STI began the year of Rabbit with Open High at 3232.99 on 7th Feb 2011 and closed at week low at 3077.27. Just merely rebound little from 3054.34 Day low recorded on Friday 11st Feb 2011 after a continues 5 straight declines. A whopping plunge of 134.05 point or 4.17%.
From the Li’s DP illustration, the 3050 support is not giveaway yet. RSI now is 28.48 and is indicating a technical rebound shall taking place from here soon.
However from the TA view of point, any rebound shall be short lives and shall be treated as a chance to exist the long holding position (Refer to circle A&B for illustration on weak rebound and market continue to dive after significant plunged on May 2010) unless you have intention to hold more than 18months or you have a deep pocket to take the portfolio capital reduce by 10 to 30% , else all long trading positions shall be reduce to mitigate the next wave of selling.
Next support level to pay close attention will be the 3000 marks and as you can view from the chart, 3000 is at long Li’s PCI stretched line. This is a very critical support level and if it is broke and unable to recover by end of June STI will trigger another wave of massive selling and market may drag over longer period to recover. However the good news is my teacher + My view predicted the market will bottom after August 2011 or STI at 2650 and whichever come first.
Happy Trading. Just for sharing and this is not an inducement to trade.
Lee Fu Yuan
Below is the posting found on one of my trader friend forum, Is better to be safe than sorry.
10 Steps to take to lessen portfolio risk
How should you brace yourself for volatile times or worse, a market correction; what exactly does taking a defensive posture mean?
Other than the obvious answer of going to 100% cash, here are a few suggestions for reducing risk exposure in your portfolio during a volatile or corrective market environment:
1. Get off margin immediately
2. Raise at least 25-50% cash
3. If you choose to trade, take smaller than normal position sizes
4. Reduce overexposure in any one industry group and diversify more broadly
5. Reduce exposure to high beta stocks
6. Avoid laggard stocks (even if they look cheap)
7. Nail down profits when you have them (be less greedy)
8. Tighten up your stop-losses (be less forgiving)
9. Sell all stocks that break down in price (especially if they can’t rally)
10. Upgrade in quality and reduce exposure to low priced stocks
http://www.stockxchangeforum.com/index.php?option=com_content&view=article&id=204:mark-minervini&catid=35:userarticles&Itemid=65 
STI heading to???
OFFLINE