Tuesday, 3 January 2017

Wilmar - 2 Maneuvers I Wished I Knew Six Years Ago

Six years ago when I first started creating my trading blog at http://stockmarketmindgames.blogspot.sg, I had a vision and that was to minimize as much technicals analysts as possible and focused primarily only on the critical movements and turning points of the Big Boys. After many years of trading, teaching, coaching and experiences on losses, I wished I knew 2 powerful maneuvers from the BBs which could have saved me hours of grueling pain and unnecessary, painstaking losses.

1. Fake Breakout - It's a maneuver that the BBs create a breakout for retailers to buy when in fact they are unloading into the rising price.

2. Profit Taking - It's a maneuver where they unloaded but not yet perform short selling. The moment they started to short sell, I believe the stock is due for a correction.

In the case of Wilmar recently, 2 such maneuvers have surfaced in the minute chart. The stock is overtly bearish with not much supporting buyers but instead clouded with pile of strong heavy sellers. The Fake Breakout was dead obvious and combined with the profit taking, I believed in the short term, Wilmar is due for some correction. The retailers who longed at high prices are waiting to either cut loss/book profits but I don't think that will ever happen because prices don't seemed like it could trend higher temporarily. Hence, the moment prices started to sell down lower, you will see panicky throw down from these retailers who bought at the high. I am bearish on this counter and is looking to short it.

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Ronald K - A Game Changer