Yesterday 30 minutes before market closed, I blogged about the no effort to rally and the difference in selling as compared to last week's capitulation. Everyday is a new day and the market condition change. One cannot have mechanical thinking and to trade this very volatile market, one needs to employ the hit and run strategy. Today you can see two green and tomorrow one red can wipe out all the gains of those two greens.
http://stockmarketmindgames.blogspot.sg/2013/06/sti-selling-all-day.html
At 3:16pm yesterday, a student of mine SMSed me and ask me the outlook for S&P 500. I am very mixed as you can see from the SMS however based on my years of experience, at 4:15pm, I replied him that it's going to turn Red. Some days the breakdown can be fake and some days the breakdown would lead to more continuous breakdowns and my analysis yesterday was the breakdown was real.
As the market condition is getting rougher and tougher because of it's volatility, there is no way I can employ technical analysis or fundamental analysis to make projection of Dow day by day. I would need to study manipulation and human emotion in charts to deduce the maximum fear and excitement so as to make forward projection of market direction day by day.
This morning when I woke up, I saw that S&P 500 dropped -41 points and the dow was -354 points. While I really don't follow news, it was Bernanke again causing the market to go haywire. Yesterday STI was down -80 points which caused jittery to traders/investors. The message I want to drive across is the low can go lower. Don't think it's cheap when the cheap can become cheaper. When market opened later, it shall gap down and a new wave of panic selling will start to follow. For me, I am enjoying and waiting to watch game 7 of the NBA Finals later. :)
Ronald K - Market Psychologist - The Big Speculator
