Previous data: Dow gain 129 or 0.77%. Chinese PMI good. HSI futures closed at about 23155 level.
This morning HSI preopen: HSI futures pointing to about +100. Top 2 weighted counters ie HSBC(14.75%) and Tencent(8.18%)HSI weighting about 1 to 2% gap up --> looks bullish. Long call about HSI +100 level.
Upon HSI futures open on 9.15am, true enough HSI gapped up more than expected. about +200 or near to 2%. And profit taking slowly kicked in. I was following the trend as well to take profit and closed position at 7% net gain.(net means after deduct comm)
But then the story not end and at 9.36am bottom, HSI ramped up and surpassed morning high. Another crazy action. HSI is very sensitive, domino effect always apply. And till now the profit would have grown to 14%(vs my 7% closed). There is Chinese saying:输要缩, 赢要谷 (lose must cut, Win must add) This sounds quite similar to trader's golden rule: cut loses and let profits run. And again and again, today's actions proved this saying is wonderful just that I have not been able to practise it.
To watch 11am action, if any. What is 11am timing? Market close for lunch break at 12 noon and close at 4pm. Hence any trend usually will establish about near the closings ie at about 11-11.30am and 3-3.30pm, where traders rush to position themselves in the majority trend ( up or down ).
This morning HSI preopen: HSI futures pointing to about +100. Top 2 weighted counters ie HSBC(14.75%) and Tencent(8.18%)HSI weighting about 1 to 2% gap up --> looks bullish. Long call about HSI +100 level.
Upon HSI futures open on 9.15am, true enough HSI gapped up more than expected. about +200 or near to 2%. And profit taking slowly kicked in. I was following the trend as well to take profit and closed position at 7% net gain.(net means after deduct comm)
But then the story not end and at 9.36am bottom, HSI ramped up and surpassed morning high. Another crazy action. HSI is very sensitive, domino effect always apply. And till now the profit would have grown to 14%(vs my 7% closed). There is Chinese saying:输要缩, 赢要谷 (lose must cut, Win must add) This sounds quite similar to trader's golden rule: cut loses and let profits run. And again and again, today's actions proved this saying is wonderful just that I have not been able to practise it.
To watch 11am action, if any. What is 11am timing? Market close for lunch break at 12 noon and close at 4pm. Hence any trend usually will establish about near the closings ie at about 11-11.30am and 3-3.30pm, where traders rush to position themselves in the majority trend ( up or down ).
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