Sunday, 1 April 2012

Riding & dismounting my two horses - Yoma and Ezion

In my 26 Feb post ,  when Yoma was trading at about 42-45c,  i suggested that Yoma might be ripe for accumulation after some retrace first ,  maybe to recent lows of 38/39c ( which it did retrace to after 7 days ) with potential for rally to 51-54c.  Last Friday we actually hit 51.5c day high but after a one month wait.  

 But I have a confession to make  ,, after Yoma broke out of 44c, I wrote in a 15 Mar post -"Yoma finally breaks out"  that I will dump two thirds of my holdings at 47-48c because I had expected a downward reaction there. leaving one third for ride to 52-54c.  

 ..for how long , I don't have a clue but in the process of dumping frenzy , I dumped almost all,  about three quarters of my Yoma holdings as I do not want to sit through the corrective reactions which can be psychologically upsetting and affect my deployment of capital into other more nascent breakouts.. for which later Ezion turned out to be one of them ( see last post " Ezion breaks out "  ) .

On friday morning I had an inkling  the Dow is going to be good on friday nite ( this was borne out later by Friday's Dow which went up 66 pts ) , ..... that should set us up for a good opening on following  Monday morning .

So I asked myself  on friday morning - what stocks should be ripe for a breakout to exploit a good Monday opening ?  Yoma readily comes to mind as it suffered a false break south to 46c the previous day... 

I also decided not to dump two thirds of my Ezion though it hit my intermediate target of 99c -$1 ( see last post trading plan - "Ezion breaks out" ) as I wanted to exploit the good Monday opening to dump.

When Yoma passed 47c with strong momentum on Friday morning  , I quickly accumulated 600 lots of Yoma at average price of 47.5 , about the same avg price I dumped my Yoma the last time.

Much as i hated the exhorbitant broker fees of local brokerages,  I do not mind suffering the extra brokerage fees as a result of trading in and out of critical price levels because I wanted to deploy my capital efficiently but more importantly I do not like to suffer reactions.

True to form , Yoma surged to 51c  three hours after I got onboard . 

Now what is the exit strategy for Monday's action   ?   I will dump three quarters of my Ezion at about 99c-$1 as originally planned , hoping to ride the remainder to 1.07/1.09 and dump two thirds of my Yoma at 53-55c. I may buy back some Yoma later for the rights for which i do not  yet know the ex-date. 

Of course the price action on Monday may prove my tape reading is all wrong and I shall react accordingly.

1 comment:

Anonymous said...


you are spot on in your prediction - Yoma hits 55c today! Congrats!