Uncle Ti 88

Let's start off 2012 with a bang! Let us see which of the stocks we should buy in accordance to the commitments of traders proxy. What are the big boys aka the commercials buying? We shall look at some of the Singapore stocks listed on the Singapore Exchange SGX first! Commercials are buying : 1) ComfortDelGro 2) F&N 3) Golden Agri 4) Jardine C&C 5) SingTel 6) Starhub If you are looking for stocks that the commercials are shorting in SGX, well you will be spoilt for choice!

F&N - SGX Prices are falling and commercials are still net long! Who do we trust? Price or the commercials? Note : Remember that the commercials are not short-term speculators, they do not care what the prices are as they are in for the long-term. They load up more as prices keep on falling. To them it might be a bargain. They do have the resources to stomach the so called paper losses. For smaller investors the decline might be too hard for them handle ie. margin calls, psychology, etc.

F&N - COT Proxy Here we shall see what signal the COT Proxy gives us. Long signal was given at 5.72 and a short/exit signal at 5.85. Not much of a profit there but is is indeed better than a loss!

F&N - SGX If you look at the first post of this blog Long F&N (F99 - SGX) 6.28 , we are using the Simple Moving Average (SMA200) to trade F&N. Here the SMA200 was triggered long at 6.05 (wait for a couple of bars to confirm) however long was initiated at 6.28 as we have missed the early entry. Stop-loss was triggered at below the SMA200. Here we take it as 5.98, a couple of bars below the SMA200. Our entry is stopped for a loss of 0.30 (Exit at 5.98). Yesterday close was at 5.60. Stop-loss is a very important component in trading. Always have a stop-loss! Always know when to cut your losses instead of hoping the price to turn around. Protect your capital and live to trade another day.

F&N - Long on 10th May 2011 Long at 6.28. I use SMA 200 to see general trend and use this as one of the factors for entry. Exact entry is determined by the individual. Some people add in their own additional conditions be it technical or fundamental before entering. Entering at the right time is important. Entering too early might create a whipsaw, entering too late the price would have move a lot. Stop-loss is determined by the same method.