While a lot of public were looking to short yesterday, I was cautious and being very paranoid with the whole situation. While I saw the market tanking down and felt like taking a short position, my experience and memory refrained me from doing so. From the way I look it at, it could be all panic selling. I went long instead. Although I could have made money on some counters like Noble, Ezion Holding, Capitaland, etc..I prefer to stay sideline and follow my judgement and that was to long the strong ones. I am a short term speculator and am interested in making money on the very next day, if not the next 2-3 days. I am not interested in very long term view. So if I were to short yesterday, then today I shall be cutting losses.
Today, the market will rebound a little. With too many shortists shorting the market, the chances of the market going down is a low because the BBs know what the public is thinking and will first need to bring prices up to distribute more before allowing it to drop further. To long is also stressful because at higher prices/levels, there are many sellers. The best course of action is to stay sideline, of course one is skillful enough to select the correct counters.
UPDATE 28/2/2012 6:48PM.
STI rebounded after my post in the morning!
Ronald K - Market Psychologist - The Big Speculator
