DBS - Is It Safe To Long?

The Dow recovered last evening and it was a good reversal. From -500 points, it turned back up to -66 points which was simply amazing. It proved one point and that was never go short sell on a break down and never short on the obvious signs of a break down because it's dangerous as reversal like this might happen. Hence, today while many though that the market would trend lower, it gap up instead.

DBS also gap up in lieu of the next 30 cents dividend. However after gaping up, the stock simmered off a little because the market is still digesting the next direction of trends since it's unclear where the market wants to move now. So it is safe to long DBS? Look at the 2 morning break down bars in the Dow Jones Futures, it tells you the sellers still persists on mix signals and the market is unsure of the movements. Hence, since DBS is a blue chip and it mimic the Dow movements pretty much, I would stay out now at the moment because it's pretty choppy and volatile since the movements can be wild. I would wait for a clearer signal again then go for investment at a later time.

Ronald K - Market Psychologist - A Stock Market Opportunist