The long-awaited rebound is finally materialising. This can be the rebound that will take us all the way to spring.
Having observed events frtom the sidelines whilst this has been happening, I realise that buying on days where stock markets dip most feociously yield the most returns. This is the only way to trade this rally in a bear market. However, it is a very dangerous strategy. Prices may just pierce through support. Therefore, in order to trade this strategy, I must insist on prices to fall to as near support as possible, and place a very tight stop below.
Stocks I am watching:
Wilmar (too high now. I purposely allowed this to go, it is like a tester round)
Olam (falling nicely towards support at 1.22. If there is no other fundamental reason, I will buy this one).
SembMarine (reward-risk ratio is pretty low now, so not really looking at it).
Noble (falling towards support at 0.815. tracking this one closely too).
I am rejecting the RSI method because, it is more effective if market is trading sideways. Currently, market is too volatile for that.
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