I’ve been hearing about advice that “investors should be cautious”, ” take money off the table” or talk about a “correction” (especially in the Philippine market which had a bull run lately). While I was thinking along the same lines, fortunately, I have, through the advanced workshops in trading that I’ve attended, learned not to act on what I think alone. Yes, that means, my thinking can get quite “screwed” 🙂 so, better to have a system to guide my decision making, and not get carried away with “what I think” at any given time. Since yes, the markets do not care about what I think!
Like what I was saying at my previous post, the stock STO had moved up steadily for a month, and normally, I think, it would move down around now since the market is cautious, and it has inched a little bit down, but defied the strong negative “the sky is falling” sentiment of the wider market in the last few days . I held on, knowing that what I think may not necessarily be reflective of the market, just ensuring that my trailing stop is not breached (which is at 13.30 level). After all, there is still the possibility it may still move up (given the Iran problem), and today it had done so, by mid day, it is still up by 30+ points, breaking away from the low volatility of the last few days, indicative of demand on the stock and may continue its move up.
On the global economy,( believe it or not!) there are signs “manufacturing across the world is strengthening”. There were reports of good numbers in US, China, UK and Germany. Economic reports for developing countries especially in Asia have also proven resilient.
So if you were banking on a move down, don’t worry, most investment advisers also thought so, but they also said, “wrong, but not too late”, let’s ride the trend.
Highly Liquid Asian Markets
Full article on Bloomberg:
http://www.bloomberg.com/news/2012-02-01/u-s-stock-index-futures-gain-before-manufacturing-data-chevron-advances.html
