Trade Summary August 2011

August has been roller coaster for me. Things just did quite get into rhythm for me. I found myself not inline with the market. One of the biggest reason is that I was not exactly with the market. I was involved in a project that does not allow me to access the the market information for more than 3 weeks starting from the last week of July. This is the problem. These days, I am quite hesitate to take on new projects. Year 2009 was an example.

 

It has been quite frustrating for me. My counters broke the cut loss point and I didn't get to sell them. One of the problem is also the expectations. With too many analyst promoting the idea of QE3 or its equivalent, one would expect the market to remain stable. However, I believe it was these analyst's companies that are selling away their stocks. This is conspiracy theory but it is widely held true these days. The cycle is simple: the analyst promote buying. Their companies quietly liquidate their positions to retail investors. When they want to buy, the will call for selling so the the prices are depressed.

Moving forward, with the job data from US below expectation, the market is going to continue its volatility with inclination to the down side. Is this a good time to buy in? I don't know. Maybe the situation is not that bad and it will bounce back quickly. Or are we waiting for a real sovereign default to erupt and cause the whole market to panic before we see a real rally? I think we will know soon.