Broad strategy: Buy beaten down stocks, sell them all in September.

With the Dow Jones Industrials up a stellar 142 points last Friday, I would anticipate that next week would see some interesting moves in good quality second-liners that are still less than 5% above their previous week's closes.

Personally, I have positions in Oriental Century, Lereno(bought on Monday), Celestial Nutrifood, China Sunshine( bought on that fateful Friday the 17th),Equation(bought on Tuesday), SingHoldings, Alantac, Yanzijiang Shipping, Oniontech(all bought on Thursday), Japan Land and Firstlink(bought on Friday).

In Malaysia, I have purchased small stakes in Hong Leong Industries, AsiaEP and Borneo Oil.
In the past week, I manage to reap gains on China Sun, Luzhou Bio, warrants of OCBC and Citydev, HLNTech, Advanced Holdings, People Food, Midas, Hyflux and Ferrochina.

In Malaysia, I made hundreds each on DNP, TA Enterprises, MAA Holdings, Kuchai Dev and smaller amounts on WTK Holdings, AsiaEP and Hong Leong Industries.







The chart of Orient Cent shows an MACD indicator that is near the bottom of a 'U' shape formation that usually portends an upward 'hook'. Anticipating this allows one to hitch a ride on the stock before it actually makes a 'breakout' upwards. Momentum traders(such as 77777 and Joshing on the Channelnewsasia stock forum) will only dare to enter when the stock has already risen 8-15% on high volume and the aforementioned hook up has already occurred.

I was emboldened in my decision to go long on this stock because the recent correction saw the stock touch the 61.8% retracement of the gain from January to July.

However, I believe in the modified adage that the earliest bird gets the fattest worm.