STI had began it's much awaited selling and once again many public were caught off guard. I was just talking to one of my friend and he told me he lost a lot in it and he had to hold until it goes up again. This tells me the importance of charts and learning how to read it like the big players. Looking at the whole operation, i already saw big players unloading and distributing last week, however the definitive moment came yesterday when finally they had finish the transferring process and started short selling.
Looking at STI the past 2 days, it confirmed the bearishness that was developed last week. Could this be a start of a larger downtrend or a correction for higher prices to come? The answer is I don't know until I see evidence of big players activity either supporting the market or allowing the market to fall further. My trading plan for tomorrow would be to watch for a weak rally within these few days (if any), then look to short more or continue to hold my shorts until i see big buying emerging which tells me a start of an uptrend is imminent.
**Remember, for the market to tank lower, there must be rallies for more distribution. If the market continues to free fall, this tells me the big players are buying heavily and planning for a bull campaign to come.**
Ronald K
