Overnight Dow Jones closed down 55 points. After closing down for five consecutive days, Hang Seng Index today turned around the trend and rallied 536.75 points, closed at 22888.92. The November futures opened at 22301 and ended up 546 points at 22905.
For us who are active in the futures market, we think Hang Seng Index is range trading around 22400-22900. Risk is lower for day traders; for overnight traders, they are either making big bucks or having whipsaw. It is important to exercise risk and capital management when in the market.
At the current market condition, we think every dips is a buying opportunity and we will not chase into buying any stocks if the price had gone up. If we missed it, we'll give it a go and treasure hunt again. If we have paper profit, we'll consider to sell it, or hold on to it. No matter how, we'll have an exit price in our mind.
We decided to sell Convoy Financial Service (HK: 1019), as the rally had brought us 11% profit within days. We might have a bigger profit tomorrow or later, but who knows?! We are happy to cash in now and look for better opportunities.
As for KLCI Index, the cash market closed at 1663.2 (-2.12) and futures closed +1 at 1652. Spot futures was traded between 1638.5-1660.5 (22).
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