JKSE Today

Today, our index opened nearly flat, but the index finally skids again & went as predicted. I remain to be cash full this time & wait till the market to finish the consolidation. Yet, our pick for this year will be more specific not only the small valued or cheaper value, but also the less sensitive stock toward the BI Rate & Inflation, which are the main threat for our trading this year. Hence, the banking sector will be lack of favorable for me this year.

Be very careful & aware of the stock picking & the constraint that can affect the price. Happy trading & have a nice weekend. The target of index remain the same but a bit increased to around 3300. The detail will be posted later

Best Regards,
Christopher Tahir
Blog: http://ez-stock.blogspot.com
MSN: chris_tahir@hotmail.com
YM: chris_tahir@ymail.com

Mail to my Y!Group:
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Today's index

Today the index moved up rapidly,but unfortunately it pulled back again since the 2nd session. This is what I meant as a fake bull and today we saw a bullish reversal candle which is a shootin star.

This can be only an ordinary candle & also reversal one. For me, it's more to a reversal candle which is sometimes quite valid. For sure, a lot of people would be trapped today, but for me, it's quite usual that we're being trapped in this kind of situation. For those who are in full position, it's better to sell on strength, but still better to be a fat cash right now

Best Regards,
Christopher Tahir
Blog: http://ez-stock.blogspot.com
MSN: chris_tahir@hotmail.com
YM: chris_tahir@ymail.com

Mail to my Y!Group:
ez-stock-subscribe@yahoogroups.com

EZ Stock List (Jan 13, 2011)

Today our index rallied a bit but I think that this is not a confirmation of the bull has been back as the value of transaction for today still less than yesterday's value, but even it's going up a bit & some stocks are showing a buy signal, we can try to have a bit of profit this time but still keep in mind there's only a bit of surge today. Back to the channel but again we see an almost the same pattern of what happened in May.

See the chart at the Green & Red line, as we can see that there's almost the same pattern in the volume, yet both are white candle with a formation "engulfing-like" pattern, both close only a few points below the intraday high.

 Based on the pattern, if tomorrow really slides down again, then the next target is around 3200.19 based on Elliot Wave counting.

But still, we can watch some stocks which are quite defensive even in such bad day for our index. When index went down so fast & hard, they aren't went down that fast.

1. Borneo Lumbung Energi & Metal (BORN.JK)

Rating: Buy; Entry: 1770-1790, S/L: 1580-1570, TP: 2050-2100

2. Jasuindo Tiga Perkasa (JTPE.JK)

Rating: Buy; Entry: 1250-1260, S/L: 1180-1170, TP: 1610-1630

Happy Investing^^

Disclaimer ON!!!

The January Effect

The January Effect is a calendar-related anomaly in the financial market where financial security prices increase in the month of January. This creates an opportunity for investors to buy stock for lower prices before January and sell them after their value increases.

Therefore, the main characteristics of the January Effect are an increase in buying securities before the end of the year for a lower price, and selling them in January to generate profit from the price differences.

This type of pattern in price behavior on the financial market supports the fact that financial markets are not fully efficient.

The January Effect was first observed in the early 1980s by Donald Keim who, at the time, was a graduate student at the University of Chicago. It is the observed phenomenon that since 1925, small stocks have outperformed the broader market in the month of January, with most of the disparity occurring before the middle of the month.

The most common theory explaining this phenomenon is that individual investors, who are income tax-sensitive and who disproportionately hold small stocks, sell stocks for tax reasons at year end (such as to claim a capital loss) and reinvest after the first of the year. The January effect does not always materialize; for example, small stocks underperformed large stocks in January 1982, 1987, 1989 and 1990.

Will the January Effect come to our country??? Just wait & see... I don't think that the January Effect will come in this week. But who knows that it come suddenly, but keep in mind that we're in a flash crash & now I'm 80% in cash to catch a good opportunity that might come.

^{Reference: Wikipedia.com}

Happy Investing^^

Disclaimer ON!!!

Next Target

Next target of JKSE will be around 3283.85 - 3295.1, after failed to hold itself at positive zone which finally was pushed to negative zone.

There's still no positive sentiment that will come and I still remain a technical rebound for tomorrow with maximum target at 3550 just like today's high, as the pressure for today is already lower but still the pressure exist and I believe it will continue until the target level is achieved.

Happy Investing^^

Disclaimer ON!!!