Today I expect to see continuation of panicky selling in the market. I got a lot of emails and questions on whether if it is cheap to buy property stocks. On my blog, I said :" I will be timing my entry with the BBs the moment I see that they are ready to bring the prices higher." Obviously, they were not ready yet as there need to be more panic for them to buy at wholesale prices before a rally campaign can be conducted. However, please put those property stocks in your watchlist. When the market is ready, those property stocks will most probably be the first or second to run.
If you still think the news or announcements are the culprits which drives this maelstrom, you are dead wrong. It's the BBs whom put out shorts last Fri caused today's situation. For this current situation, I will never buy for a bounce or rebound, but instead short on every single strength when it turns weak. (a.k.a The K Turn) Don't get yourself into that sucker class or you shall pay for that hefty price! Treat every rebound with a pinch of salt. When the market is tanking, there is no support. Everyone will be looking at their charts to find the support level but only to be depressed later. In my opinion, it is only the assistance and the lending hand of BBs that allows an uplift to the market. That is why I don't use support and resistance in my trading.
While we are heading to the weekend with all the volatility sell down, that leaves me with a note on where will STI end before a rally commence. I shall reveal it on the market outlook seminar this coming Sat and Sun.
Ronald K
