It has been rocky over the past 2 weeks. Last week, we saw DJIA plunged 280 points on one day, and recovering another 240 points on the next. Everyone has been warning about volatility, and they mean it. Bernanke and President Bush's talk last Friday could have helped to improve the sentiments for the next few days. But we are not sure if the effects are this going to last, esp. when September seemed to be a bad month.

There are talks about some guy who bet millions of dollars in Puts for the first 2 weeks in Sep. CNBC also talks about September being a historically bad performing month.

We have been warned about sub-prime, correction, volatility, and now a cruel month in September. I am not a Bear advocates, but it pays to be careful. The best thing to do at this time is probably to remain nimble and not to hold long positions.

There were some still stuck with shares at the high price levels before the DJIA plunged. They should have cut loss earlier, recover 90% or more of the principal and trade over the last few weeks. It is great that there is a rebound now, esp. after last week's rally, but we are skeptical that this is going to be a lasting Bull.

If you are caught and still stuck with shares bought at a high price, consider using this rebound to close the loss gap and cut your loss appropriately. Since it was market correction, the price may not recover all the way up to the previous high before the major plunge in early August.

In stocks, you need to move with the big flow. If you are left behind, you will be out of action, while others who cut loss are back in the market.

Caveat Emptor

I will be sharing some more tactics which I saw in the SGX. Also bought some shares at NYSE, but the movements is too fast for me.