Sunday, June 17, 2007

shanghai market

Wow! What a way to end the week! With this i believe that we can expect an exciting and bullish next few weeks. :) and who knows maybe the 3,800 mark can be reached before the end of the 1st of half of the year. :) but anything can happen in the market so lets just wait and see. :) ive read some of my past posts and i think i should apologize for some of the typographical errors and maybe some of the topics that i wrote might have bored you. But i should also thank some of the faithful followers of my blog and to some who have posted comments, sent private messages and e-mails. :) thank you very much it is very encouraging and believe me i will always strive to learn more about the market and share it here with everybody. :) before i start discussing my topic for this week i would also like to mention the solid group inc.(SGI) has finally broken out and im really happy about it. I remember when i wrote about it some time late october last year a lot of people really reacted to it. But the reactions were really more on the negative than on the positive but anyway everybody is entitled to their opinion. I have stated my opinion and it might be right or wrong but the best judge would be time. :) “when holding a good stock time is your best friend, when holding a bad stock time is your worst enemy.” You could read about sgi in my blog, i wrote about it october 25, 2006.

www.chiefstocks.blogspot.com/2006/10/solid-group-is-solid.html

i would like to explain the shanghai mini selldown and try to explain to you guys on why it happened and the reasons behind it. I talked to a private banker and she told me that the shanghai stock market is mostly held by retail investors or weak hands as they say. Why do they say that retail investors are weak hands? Because the majority of the people here are the ones who dont understand the stock market fully well. Most of the people here trade on tips and trade based on recommendations by other people without even researching or understanding the company that their buying into. So if the market drops a bit you can expect a panic because they dont fully understand the stocks that they own. :) another factor in the cause of the drop in the shanghai stock market is that the rise is meteoric and too fast and sooner or later the market will find its equilibrium. Another thing that could explain the fall of the market is that there are not that many funds invested in their market. That being the case, it is a house built of sticks and the big bad wolf could blow it away anytime it wants too but a house that is built of bricks would take so much more to bring it down. :) the fundies are the backbone to any stock market and when present in a market is a sure sign of good things to come for it. :) the mutuals funds are the ones that are considered the strong hand. their market will also be affected if their government will approve that the locals can invest money overseas. With all of these things mentioned, i believe that the shanghai stock market is due for a big correction but i really couldnt tell when exactly this will happen but i know for a fact that it is due for one. What does this mean for us? Well it could really mean a lot of things but there are really a lot of factors that you have to consider but for me the real issue at hand is the philippine stock market itself. How is it doing? It is doing great now up 23% year to date and with its close last week it will mostly likely go higher and who knows maybe 3,800 very soon. :) the philippine market is fairly valued as of the moment and if ever there is a correction i believe that it wouldnt go down as much. But for the meantime let us all enjoy this bull market of ours. :) words of warren buffett about buy and hold. “i made a lot of money doing nothing.” good luck on all your trades and God bless. :)

2 comments:

Roy said...

Im surprised, despite knowing the scheme you still put money in it? Why?

chief stocks said...

that my friend is what you call greed :) its a very infectious disease :) but im glad i didnt get burned that bad :)i was hoping to earn a quick buck :) its always nice to share your boo boos with friends it cleanses the soul :) just remember the two most dominant emotions in the market are: hope and greed. :) dont get infected :) God bless