China and Oil Stocks Theme Play

First trading day of the year: WONDERFUL!

Today there was a widespread rise in most counters on STI in view of the better than expected 7.7% GDP growth. But what amazed me most is the record gains by china and oil related counters. The former due to expectation of even higher GDP growth (booming economy) for 2006. Whereas for oil sectors, seem like numerous projects announcement ongoing - eg Technics' 15 million contract.

Nevertheless, one important trading rule is:

RIDES THE MARKET TREND (sectors in play)
- its hard to beat the market, going against the trend. Winning odd is low.
- follow the trend: identify sector in play and buy the leaders.

You will find this rather rewarding!!

But beware: select good china stocks with strong fundamentals and following. Lists include, but not limited to, Celestial, Fibrechem, Fung Choi, Beauty China, Pine Agritech, China Sunbiochem, Sky China, .....

For oil stocks, Rotary is expected to make announcement tml morning! I would expect Federal and Technics to continue rising as well over a week or so.. till i see a reversal sign!

So, catch the boat before you miss it. CAPRICORN effect, Chinese New Year Rally.. odds are these will happen.

Adious.