Noble continues it's tumble after my post earlier on. The research report from Iceberg was simply detrimental, but I believe to avoid this sell down and book at the hidden selling point is to identify Fake Breakouts before obvious selling materialized. The old adage of buy on rumors and sell on news holds true.
http://stockmarketmindgames.blogspot.sg/2015/02/noble-group-stock-tumble.html
US$1 billion wiped off market value of Noble Group and two other companies on Monday after reports queried accounts
HONG KONG - Shares of Noble Group, a Singapore-listed commodities trader, sank the most in three years on Monday. Sound Global posted a record drop, while Ozner Water International Holding lost 20 per cent.
The common factor driving all three was research reports, at least two of them by short sellers, alleging accounting irregularities. Hong Kong-based Noble and Sound Global, a Beijing-based water-treatment firm, denied the allegations. Ozner Water said it' s preparing a detailed response to " unfounded" speculation against the company.
The declines, which wiped out more than US$1 billion of market value as trading slowed before China' s Lunar New Year holidays, underscore investor skittishness about the reporting practices of Chinese and Hong Kong companies almost four years after Muddy Waters put a spotlight on the issue with its 2011 report on overstated timberland holdings at Sino-Forest Corp.
" In the face of uncertainty, investors would sell first," said Alan Richardson, a Hong Kong-based money manager at Samsung Asset Management, which oversees about US$112 billion. " It' s a normal human reaction."
Ronald K - Market Psychologist - The Big Speculator
