Thursday, February 21, 2013

question and answer: What's your insight on smdc? (21 feb 2013)

i just received these pms this morning from a member of the financemanila stock market forum ..


1. What's your insight on smdc? 

my quick reply:

i have no insight .. im no insider [ .....deleted .....]

we know trading in smdc is speculative right now since the recent price action is based on rumours and talks of mergers of sy-property stocks .. thus .. unless u know what is really happening within the sy family .. it is better to adopt an opportunistic stance in trading smdc ... which means ... if u already have smdc ... pocket profits as soon as realised ... otherwise .. one may be left stuck at the top as everybody has already exited their positions .. but if ur in a gambling mood .. well .. u can wait until the end and just hold it ..

if u havent entered smdc yet .. then unless ur really sure of what ur doing .. dont touch smdc ... better just watch it from the sidelines and cheer the rest who think they can beat the pros ..

if i have time before the open today ill post something sa blog ko about smdc ... ;) 

good luck

2. Thanks xxx

Just more on the chart perspective


my reply:

ill try to post something sa blog .. but just a quick reply ...

twice smdc tried to break the 8.85 res .. but 2x it failed ... with the 8.96-9 peso range as a strong resistance .. which indicates that people are exiting or selling it down and tak[ing] profits within the day (u must realise it has gone up 50% already the past 2 weeks so pros are already selling to new cummers) .. so right now those who have smdc may be quite edgy already .. waiting to just bailout of smdc with a small profit or even ready to cut loss if an adverse price action takes place ...

macd is still going up .. rsi is still going up .. but the sts has changed direction last monday already ... both rsi and sts @ overbought levels already .. which is enough reason for those with profits to sell (remember ... the macd .. rsi and sts are trailing indicators .. they just show where the stock came from and where it is right now ... it does not tell u what it will do tomoro) 

i always say .. better err on the side of caution ... 

great trades! good times!