My broader strategy has worked quite wonderfully so far...

This past week saw frenetic trading on my part, as the contra selling(selling without paying for the shares before they come due) of intraday, intra-week and intra-fortnight positions amounted to over twice the value of my stock portfolio, and I made more profits this week(mostly on a contra basis as well) than I have in any week over the past 11 years, when I bought Transmarco in August 1996 at prices between $3.92 and $4.70 and sold them at between $6.20 and $7.50.



To hedge my bets, I dipped my toes into some put warrants on the Hang Seng Index as it touched a new record so I am hoping that the Dow's 240 point drop last Friday will allow those positions to turn in a small profit. As at last Friday, they were still at the same price I had bought them three days before.



Also, I liquidated half of my short-term portfolio that had turned in small profits since I bought the shares in August, including Equation, Plastoform,Firstlink and Lereno while also taking some losses on China Sunshine and China Yuanbang. Therefore, I can use these sales proceeds to selectively pay for shares coming due next week.

In fact, I am comfortable with holding most of my short-term purchases until the end of September because I believe the Dow Industrials will explore the Aug 17 bottom and them rebound by at least 10%.

These purchases include Longcheer at 60c, Giant Wireless at 15.5c, 8Telecom at 14.5c, Celestial at 1.15 and others.

However, seeing the Dow futures dropping near the close of the Singapore market did not prevent me from disposing of a further $18,000 of open positions in ASTI, Asia Environment and Longcheer(partial) in the last minutes of trade.

I would advise my readers(and myself especially) PATIENCE to wait a day or two for panic to set in to ensure they get the cheapest goods( I remember fondly my profitable foray into the market at the height of the sub-prime related selling panic on August 17th).

For instance, I would start considering entering DBS call warrants once the mother stock drops below S$19.

Let me post some charts of 10-year Treasury bill yields(which drop when investors flee equities for save 'haven' bonds, the Japanese yen( the mother of the carry trade) and Countrywide Financial, which precipitated the panic back in August.









































































In summary, all three charts are oversold and overbought as the case may be, signalling that the time may be near(thought it may take another two or three days) for the 'elastic band' of demand and supply to snap back.