Up up down down

Market is expected to be highly fluctuated with a lot negative news around. The first we will see will be another round of US debt ceiling that is going to happen on 1 October. The last similar event took place two years ago and market really showed some big discount. Therefore I did not buy much recently. The only deal is  buying in 2000units of Airasia at RM2.61 after FED announce QE will be continued. It did rise till RM2.74 before dropping back again to RM2.6 level. The reason I bought in Airasia is to hedge against my Supermax taking advantage of US dollar depreciation since FED continue to print money. Airasia will be benefited if Ringgit getting strong while Supermax will be good if Ringgit depreciated. Will stick to this two stocks in the mean times since have no idea on the outcome in October. Saving more bullet to prepare for some real correction, hope this time is for real.

Lock in profit

With the US senate approve Syria war on last Wednesday night, I quickly sold off Airasia at RM2.61 on Thursday morning anticipating more conflict to come as Syria war is a sensitive international issue. My guess was right when Russia presiden voice against US by supporting Syria. This will definitely going to be very huge impact to the stock market if US still go on with the strike. This again can cause a panic selling and will be a good entry to catch a rebound later on.

Besides Airasia, I also lock in profit for 2500 units Supermax at RM2.75 on Thursday because RSI already more than 70 meaning its highly over bought this few days. Left 2500 units to see whether it can still continue with the rally as the situation is benefiting the company. Continue collecting cash to anticipate for more market fluctuation. My strategy is to catch rebound by looking for good fundamental company that strike RSI below 30. I think RSI and MACD is really useful tool for short term investment. Good luck and let see how is the market next week.