We in SMMG club shorted yesterday while everyone was buying on breakouts yesterday. In fact since I shorted Noble yesterday, I knew all along my plan was to short and I am biased towards the shorting side of the game instead of going long. I shared that with everyone 2 days back and I shared that with my students in the course.
http://stockmarketmindgames.blogspot.sg/2012/11/sti-mixed-signals.html
Yesterday at 2.36pm when STI was rising and while everyone was longing on breakouts, a student alerted me to watch a particular counter. The chart was so beautiful that I decided to take a short. I emailed my actions to all my students that I shorted. I believe transparency in my trades rather than hiding trades.
At 8.43pm last night, I SMSed my friend and asked him if he shorted and I also told him that Dow would crashed 300 points in the same night. This morning when I woke up, the Dow indeed crashed 300+ points according to my predictions. Also, yesterday a student asked me if Midas was looking good, I told him No, why? Because I expect a bad Dow in the night so as to just avoid reactions. Some students who SMSed and emailed me yesterday, ya'll should know most of the questions were related to short and gave you my answer.
Now, why did Dow drop 300+ points according to my predictions? It's very simple not only because of my odd number theory but more importantly, Obama was re-elected as the president. During Asia hours yesterday when the result was out that Obama was re-elected as the president, the market was a one way fashion to the north, STI broke out, many underlying counters were running and that's where I knew most would participate on the long side. We in SMMG club must take advantage of that public excitement and kill it. In my past previews, I shared with everyone many times why fake breakout and fake breakdown happens and so we witnessed one LIVE yesterday. Today, the market would definitely gap down, however the best is to watch first and not do silly things with the public.
I will share more in the preview tonight. It shall be a good one for education purpose.
Update 8/11/2012, 9.51am
Midas gap down!
Ronald K - Market Psychologist - The Big Speculator
