China Minzhong - Short Sellers In Control

I received the news from fellow students and public yesterday about the crash in China Minzhong. The stock was trading 1.015 in the morning and suddenly it trended down in a spiral fashion all the way to 0.53 before a trading halt was imposed.

http://www.bloomberg.com/news/2013-08-26/china-minzhong-falls-by-most-on-record-after-short-seller-report.html

On the chart, there was already some telltale signs of weakness before the crashed, however no one expected it to crash so much in one day! The Bloomberg news was released yesterday where I believed short sellers were in control of this counter. Looking at most of the China stocks, China Gaoxian, China Milk, most of them related to agricultural got suspended and I am super wary of S Chips counters no matter how good it's fundamentals were. I seriously believe they lacked of quality corporate governance to warrant investors to take a serious look at it, or at least I won't even bother to take a punt on it.

Ronald K - Market Psychologist - The Big Speculator

China MinZhong - Student's Trade Record After Course

Yesterday I just finished the stock operation course. Today I asked this student of mine how was the course? The reply was pleasing and motivated me to greater heights. One day after the course which is today, he booked all his profits in CMZ which was not bad considered that he longed at 0.92. Truly pleasing to see students making money and start referring friends around. All I want to say is Thank You and profitable trades ahead! Shall see ya'll in Feb!

If you are interested to know more about the course or the strategy or how did the student spot the bottom, you can kindly register for the preview. I shall share more there.

STOCK OPERATION PREVIEW

Preview Date: 

30th January 2013, Time: 7.00pm to 8.30pm
Venue: City Index Asia Pte Ltd
6 Battery Road
#20-01
Singapore 049909
(Next to Raffles Place MRT Station)

Contact Gill at manveer.gill@cityindexasia.com with the following details.

Subject: Attending Ronald K "The Stock Operation Preview"

Contents: Name, e-mail address and mobile number. 

Ronald K - Market Psychologist - The Big Speculator

STI - Trading Over Holiday Period

Trading through holiday is never an easy thing. I remember I lost $10k where I was holding positions over a long weekend where Friday being a holiday. The following Monday, my profits was wiped out due to being greedy and hopeful and also because the market was heavily gap up when I shorted on a Thursday. I learnt my painful lesson from there on and one of my golden rules was never trade through a holiday period unless I am willing to pay for any unforeseen consequences if any. Today was the same thing, just when everyone thought it was a short on last Friday, STI just went higher in the morning.

In my course, I shall guide and impart some golden rules to follow to avoid unnecessary trading/losses. As for how I knew the market will open higher today, I shall share that to the lucky few who are coming tonight. It's truly not easy to "calculate" or I should say speculate directions when holiday is involved. Gill just told me there is a few more seats left, interested parties can come tonight. Thank you.

By the way, someone asked me about Cosco in my last preview and I told the crowd it is going to react. Did it react today? You judge for yourself. Same goes for ChinaMinZhong when I told the crowd I was bullish in this counter.

Ronald K - Market Psychologist - The Big Speculator

ChinaMinZhong - The Amazing Crash

Looking at ChinaMinzhong when I first posted on April 18th, it had crashed amazingly thereafter. So if one shorted, he would be rich. So I when I made my analysis that we won't see 1.68 in the near term again, the BBs just keep putting out shorts in a linear fashion where there was no recovery to the upside.
http://stockmarketmindgames.blogspot.com/2012/04/china-minzhong-trust-chart-not-reports.html

I am a dilettante in the area of BBs. When I see a report from analysts, I am cautious of their motive. When someone tells me news, I treat all news as bad news. When someone gives me a tip, I listen and put aside. I only trust the charts because it records the footprints of the BBs which is the truth that all matters.

Ronald K - Market Psychologist - The Big Speculator

China MinZhong - Trust The Chart, Not The Reports!

As I was scanning through the forums to see what's the hottest topic out there, China MinZhong caught my attention. As I was reading the posts, on the last posts, I saw a CIMB analyst putting out an outperform call and a target price of 1.68 for China MinZhong. I got to give my hats off to this analyst because from the charts, I don't see a single signs of BBs buying activity and how is it possible that CMZ will ever reach 1.68, unless its on a long term basis. The only thing I can think of is this analyst loaded a huge load of shares in this counter and hoping that by publishing this report, public will buy and push the price higher so that he can distribute. Think about this, there is massive selling today, how is it possible to go higher without the BBs supporting? I seriously don't know how is that possible. To reach higher prices, this stock has to come down more first to reach an attractive price level before we can expect the BBs to show their appearance in their buying activity.

I am very firm we won't see 1.68 in the near future. CMZ is a short to me. Morale of story, trust the charts as it don't lie, but human intentions are unfathomable and sometimes can sway you to the wrong direction.

Ronald K - Market Psychologist - The Big Speculator