Questions from Subscriber..

On and off, I will post questions that posted to me by my subscribers and share it with everyone so that we can learn from each others over the time..

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Mind if you help do some analysis on local stocks? Realised all are very manupilative. Push and dump etc. Except for few counters like HL Asia, Noble, Sembmarine able to sustain higher highs and higher lows on higher volume. Even performance of good counters like Kepland can be erractive.
You have been analysing Sinotel and should be aware that the following trading day doesn't guarantee price up even on high vol and strong white candle. And with our local brokerages so high, retailers are at great disadvantage. I would feel buying on support and cutting loss if support breaks is better than entering high on "breakouts" that usually end up being push n dump for local stocks. Whats your views?

Thanks.

MY REPLIES:
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Hi,

Thanks for your email.Yes, indeed they are manupulative. My view is if can observe that the stocks have trend to move further up but due to certain circumstances, it is still stale as in the mode of accumulation, they will take advantage of those that with contra and without holding power to accumulate more and dump when retail investors got in. One of the typical example are Sinotel and NOL, I have been doing some analysis on the pattern and you will notice that accumulation process could have been occured during the range of (0.475 to 0.49) during the last few days after the first Elliot-Wave uptrend (from 0.46 to 0.5). I am trying to "perfect-ing" this into my system on the accumulation parts in order to detect the movement before the uptrend. These has been observed by the way the stock stale for accumulation and I am pretty sure that contra players that trying to get the current price now from 0.525 onwards will be at risk for them to dispose off. Unless, the market direction and the news related to stock can stimulate higher buying uptrend that will see Sinotel move further ahead.

As for the NOL, is a typical 1-day trading load and dump where you will observe how it can go the accumulation level of 1.96 towards 2.02 and yo-yo in between these price range. So, each stock we will see how the behaviour goes and we will trade accordingly to it. There will also be some same industry stocks that will move together and I will try to explain in my next newsletter..

Thanks,
Star-Trader