Yesterday I made a post on STI trending lower on my blog and forum for everyone to take note.
http://stockmarketmindgames.blogspot.sg/2013/06/sti-no-long.html
Many were skeptical and I believe they are waiting for a big "good" news to be announced. Me, Ronald K, made a post at 9.01am as I could foresee reactions about to happen. True enough it materialized for the first half of the day.
http://stockmarketmindgames.blogspot.sg/2013/06/sti-trended-lower.html
I later received multiple SMS asking me for outlooks. One of them was my student asking me the outlook for Dow. Personally, I don't like to give long winded explanations blah blah blah. My answers are normally short and succinct and so I said RED. With Dow having a strong green 2 consecutive days in a row, Bernake should be announcing good news to lift the market higher right?
That's absolutely wrong! Look at the SMS when I replied my student. It was 3.18pm in the afternoon and observe the Dow futures chart attached, the Dow was trending higher which caused everyone to cheer, be ecstatic, except me, I was super bearish. Moreover, I also got challenge from people residing in the forum which absolutely drive me on to prove that my prediction and conviction was right and so I said YES.
While many are hoping and cheering and expecting the bullishness about QE, making assumptions about the fundamentals, staying late night to watch Dow and post their views in the forum, I was already asleep, getting ready for today, waiting for my students to cheer on today for all I knew some shorted. Today they shall be rewarded. When everyone is doing the same thing, one shall do the opposite. This morning when I woke up, Dow got slammed down 206 points which would undoubtedly inflict a gap down in STI today, so for those who shorted yesterday, today first thing in the morning, they are already in profits!! It's a 1 day job where there is no need to do any swing trade whatsoever! Isn't a great feeling to wake up in the morning and see money in your pocket? :)
Ronald K - Market Psychologist - The Big Speculator
