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Online Share Trading

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Bull trap - Be careful

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kwagga
Super Contributor
Be careful to pile into shares right now. This looks like a mere retrace in a technically damaged market.
15 REPLIES 15
Preston
Super Contributor
@kwagga,I want to buy "MTA", but I guess I can get it 35% cheaper if I just wait.
kwagga
Super Contributor
Keep your powder dry Preston. Only thing you should be doing now. No buys.
koos2
Super Contributor
This is sage advice, didnt show up on the forum yesterday though, does everone have his/her own little window to manipilated reality around here?
kwagga
Super Contributor
Koos2 - This probably also didn't show up on your radar either: Don't become too complacent by kwagga on 23 Apr 13:52 ALSI up 3000 points or 6.5% in less than a month. ALSI up 10.7% since 1 Jan. In short, we're headed for some volatility or consolidation sometime in the near future. The trend is not sustainable. So before committing to any new buys, and that include TFSA, wait for a pullback in this market. It promises to be a biggie. Please check when the ALSI hit an all time high. I'll give you a hint http://chartupload.com/viewer.php?file=38932234215283197035.jpg
Rams
Super Contributor
Well, the shares that has consisitently made me money is shorting MSM.
Preston
Super Contributor
Preston
Super Contributor
@kwagga, . Apn is looking tempting at this price. Maybe worth a nibble!
kwagga
Super Contributor
I'll start nibbling at 24600
Preston
Super Contributor
@kwagga, The best medicine for this type of market , is for the buyers to go into hibernation and let this market move along on extremely thin volume. I will not buy this markets even with RAMS money.
prancing_horse
Super Contributor
Still on a demanding PE, if the dollar strength remains one could see it losing another 10-15% IMO.
Preston
Super Contributor
@prancing horse.. The higher the PE, the lower the % holding of this share (2% - 2.5%) in relation to total portfilio weighted value.
kwagga
Super Contributor
Yes Preston I would phase my buying into this market, starting with some of the financials which is already stating to look like value. Just a note here - This market could sell off another 10-15% easily, so that why I suggest a phased approach. You won't get everything right, but the idea is not to pick a bottom, just blue chips that will start to offer value at different points in time. Eventually you want diversification in quality at good prices for the long haul.
Rams
Super Contributor
Don't change your strategy, work out your valuations, buy at your price and move on. This market will not be selling off for eternity. I am watching Mr . Price and LHC. Long term. Short MSM as usual.
koos2
Super Contributor
Care to mention a few ? I been -6 to -8 off neutral on the asli for 2 years now. Was early. Gonna buy 1 for ever 6k drop on the alsi = your fased aproach
koos2
Super Contributor
or ita be broken by the time we get to topi 18k.