On May 6th, 2013, 14:26pm, a student of mine SMSed me on the outlook for Kepcorp. My instant answer was don't short and look ready to long. Now, Kepcorp usually follows the STI index on par, however this time round, why did Kepcorp had such a huge fall while STI continued it's continuous rally? The answer was pretty simple. There was some profit taking followed by distribution then short sell by the BBs, while the profit taking in STI was lesser.
So what did I see on May 6th 2013 which concluded my analysis? That's was because the speed and magnitude of flushing was getting fiercer to a point where the retailers are liquidating almost everything while the BBs were buying at wholesale price! So it's no surprise to see Kepcorp having a 3 days rebound now. Were they hidden buying? Is this the bottom for Kepcorp? Stay tune as I will update soon. :)
Ronald K - Market Psychologist - The Big Speculator
