Many people emailed me and alert me to watch Wilmar yesterday. Yeap, I saw it yesterday, it was a huge gap down. However, it was nothing to be surprised of because I already spotted in April 2-3rd when one of my fan asked me the question on whether Wilmar was in accumulation or not. I told him there was no accumulation because from my experience and analysis, I don't see any. My eyes is like a radar, I scan stocks for high probability breakouts/breakdowns. I am sensitive to market conditions and before a stock is about to breakout/breakdown, it shall already be in my watchlist.
Most people would take a long horizontal period as accumulation as they thought BBs are buying. However to differentiate between accumulation and distribution is not so simple. There are far more to it. It's hard for me to explain it here because I could write an essay on it and it's going to take hours and days. But my point is a long period of horizontal lines doesn't necessarily mean accumulation, it could mean distribution too. So if you got it wrong, you shall get emotional rides and pay the price.
Obviously, Wilmar tantamount to distribution as opposed to accumulation, so when I saw it in early April, I knew the time would come and all I need is just time my entry as close as before it was about to breakdown. I am a speculator in nature and I see things far ahead so my job is to time my entry closely before the breakdown happens to avoid any emotional rides. Wilmar slammed to the floor hard yesterday and for it to go up again, it would require a lot of effort to sustain the selling pressure. So good luck to those who longed.
Ronald K - Market Psychologist - The Big Speculator
