No picks for today, cause US Markets got hit pretty bad on Wed & Thur, and we are lucky to escape yesterday's Asia stock markets plunge. Asia stock markets are rebounding this morning, so we might be lucky and not open down so badly, but today likely to be choppy.
After going through my charts, chinese/HK warrants look pretty bad. Some looks like its going to break their support, and may send their price going down some more. But if they can hold at their major support level, also looks like a good buy for rebound with little risk. I will list some to see if anyone is interested.
Angang-C1 ( expire 23-Apr-08 ) Support = 0.15 , Reward = 0.225
Chalco-C1 ( expire 25-Feb-08 ) Support = 0.18 , Reward = 0.315
HSBC-C1 ( expire 25-Dec-07 ) Support = 0.17 , Reward = 0.30
Sinopec-C1 ( expire 20-Jan-08 ) Support = 0.30 , Reward = 0.40
How to use the above for trade:-
For example, you can buy Sinopec-C1 at price around 0.30, and risk your cut loss at 0.28. Based on the last 5 trading days, its highest point is 0.40, so your reward can be calculated as 0.40.
Your reward-to-risk ratio is (0.40-0.30) / (0.30-0.28) = 5 , which is a very good ratio, as you are risking 0.02 loss for a 0.10 reward.
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