ASI movement to 6400 points, can not be ruled out

As mentioned earlier this week will be short due the New Year Holidays. The momentum in the Market is better even then. Therefore the sentiments are friendlier with the bulls than the bears. 6248 points was the lowest the index came down to, after it got ripped off during the trauma started from the 4th of January 2016.

We have now passed it and heading towards 6300. The next barrier seems like the area at the end of 2015, which is around 6400 region. We can't see any obstacles till then. The major reasons that brought the market down were the inconsistent policy statements, some that came from the budget, then the Rupee devaluation, thereafter the interest rates adjustments, also the proposed Capital Gains Tax, also the battered Global Financial Markets, then the re - rating of the Emerging Markets, leading the foreigners to exit. As long as the Tax adjustments are not in existence legally, the Companies would have done their normal business and show their normal results. Therefore the quarterly results will be interesting to watch.

Stocks that would make you money - Part 2

As mentioned in my earlier post, the market can hit 6500 by May or June of this year. I have spotted 32 stocks, out of which I posted 11 counters in the previous post. Today is the Part 2 of that, and the Charts of these counters will have the BUY,SELL,STOP levels.

LFIN.N.0000 - Short/Long Term

MBSL.N.0000 - Short Term

PLC.N.0000 - Short/Long Term

SDB.N.0000 - Short/Long Term

SFIN.N.0000 - Short Term

VFIN.N.0000 - Short Term

AAIC.N.0000 - Short Term

BFL.N.0000 - Short/Long Term

TAFL.N.0000 - Short/Long Term

AEL.N.0000 - Short Term

KAPI.N.0000 - Short Term

MGT.N.0000 - Short Term

RICH.N.0000 - Closely watch

SHL.N.0000 - Short Term

VONE.N.0000 - Short Term

CSD.N.0000 - Short Term

GRAN.N.0000 - Short Term

PARQ.N.0000 - Short Term

ALUF.N.0000 - Short Term

REG.N.0000 - Short Term

LGL.N.0000 - Short Term

Stocks that would make you money, and take the market towards 6500 points - Part 1

Market can move towards 6500 points till May to June 2016. The following counters would give you money if you could buy them at price ranges given in the charts. I have given you the stocks that rallied during April to May of 2015, as they are showing almost the same signs of activity this time too, ofcourse at lower levels than the last year.

                                              COMB.N.0000 - Short Term

DFCC.N.0000 - Short term

HNB.N.0000 - Watch

ABL.N.0000 - Short Term

NDB.N.0000 - Short Term

SAMP.N.0000 - 12 Months

PABC.N.0000 - Short Term

SCAP.N.0000 - Short Term

CFVF.N.0000 - Short Term

LOLC.N.0000 - Short Term

LOFC.N.0000 - Short Term

Is this Government a joke? Is that why you are not buying?

The above caption was placed by me - PURPOSELY. This is not a caption that was MADE IN SRI LANKA, but these days we in Sri Lanka listen, hear and talk of so many hilarious and mind boggling things the present Government is doing. They are unbelievable, un professional, and damn jokes are the conclusions we have to jump into. Yes that is the reality, no doubt about it. But should we wait because they are crazy and the ones who are not crazy must come and save the country, to come into the market???

I DON'T THINK SO. I LOVE TO SEE THESE JOKES HAPPENING EVERY DAY, THEN MOST OF THE PLAYERS WILL SELL AND HELP THE SMARTEST INVESTORS TO BUY.

But are you one of the smartest, or are you waiting for a change to happen to come to the Market. DON'T BE FOOLED, THAT PERFECT TIME WILL NEVER COME. SO WHEN IS THE PERECT TIME???

I have shown you that if you buy for a reason, sell for a reason, and stop for a reason, you could have made money AND continue to make'em.

BUY,SELL,STOP is all what you need.

LET ALL TALK POLITICS AND GET OUT OF THE MARKET, BUT YOU KEEP INVESTING ACCORDING TO A PLAN.

Let them wait for the perfect moment but for YOU the perfect moment is the right price to buy, then the right price to sell, or as you or me as your broker is not perfect STOP and cut the loss.

ARE YOU SCARED TO STOP LOSS? you won't be if you trade in SMALL VOLUMES.
Why do you want to buy 10000 shares and get scared to STOP, when you can buy 100 or 1000 shares and STOP and save your CASH....... WHY?

REMEMBER that when you BUY BIG at the wrong price you are the LOOSER, and THAT IS GAMBLING. IF you want to buy big, buy at the BOTTOM. Which is called BOTTOM FISHING. Then sell when the prices are rising.

DON'T TRADE FOR INFORMATION AND GET CAUGHT TO MANIPULATORS. THEY LOVE TO SEE YOU ARE WANTING TO BUY BIG. WHY? THEY KNOW YOU HAVE BECOME THEIR SUCCORS. YOUR FIRST FEW TRADES THEY WILL MAKE YOU MONEY, THEN YOU WILL LOOSE ALL YOUR MONEY, AND THEY WILL MAKE IN PROFITS AND COMMISSIONS MORE THAN YOU EVER WOULD THINK.

If you look around you will see many Clients are like paupers whilst their Leaders are living in luxury.

DON'T MAKE THEM RICH WHEN YOU CAN BECOME ONE IF YOU DO IT TO A PLAN.

DO NOT blame others WHEN YOU  do not plan and trade.

I ALWAYS TELL YOU THAT WE ARE TRAINED TO TRAIN YOU..... COME MAKE USE OF US AND AVOID BECOMING SLAVES OF BLOOD SUCCORS.

Sierra Cables - 12.43% within 3 months hit in 22 days. next one 40%

In the morning I mentioned about Sierra trying to hit 3.20. Finally it happened today, and gave a return of 12.43% in a matter of 22 days. My next level for this was a target of 40% at 4.00, and the period was within 12 months. Let's see whether you need to wait for 12 months to get a 40% return.

Limitations in Trading and how to overcome

Some people in the Market think that trading with Charts do not fit well into the Colombo Market. This perception has been turned into a misconception due to the frequency that the followers of Charts have put their trade setups into practice. But there are limitations that the average trader confront, which in turn discourage them to conclude that it is not working. If you have a semblance of passion and patience you will learn how to navigate from the restriction and become a winner. One such limitation is the liquidity or the amount of shares that would trade on a daily basis. If you are not experienced in handling this, then you would want to stay away. The SOLUTION for this is to decide on the volume well before you enter the order. There is also another limitation at the Exit point. This is something I'm experiencing even now. In Sierra Cable I gave the Exit price at 3.20 for a period of 3 months. In the last 2 days the stock closed at 3.20 but did not trade even 1000 shares, hence you can't consider it as a successful trade. At the time of writing it had opened at 3.20 with a volume of 5000 shares but we have to wait and see how the day progress in order to conclude it as a complete transaction. If it happens then there will be a return of 12.43% within a period of just 22 calendar days, against a holding period of 3 months.

ASI present trend

ASI broke out of .618 fib ret. today to close at 6230, and heading towards .764 of 6288.2.
The resistance based on the trend line plotted through the 1st higher low is at 6300 points.
Hence I expect the ASI to test the area between 6280 and 6300 before a
breakout from there. Also 6261 points is another major resistance point as that was the low it came down to on the 20th of January 2016.

I wish to see the ASI trending within the channel formed with higher lows of the
present uptrend and the 1st higher high.But we may move out of it before an adjustment.
8th will be critical, which is on the morrow. Also the next week will be a short week, as such I do not expect trend following traders to be active in these few days.

But could be an ideal platform to fish in the pond.

Present support is at 6130 to 6200. The uptrend will change if the ASI comes down below 6023 points.