As of now, I don't see any effort to rebound from STI. I maybe wrong, but still the market is not ready to rebound. There wasn't any hidden buying but more of hidden selling before we witnessed a heavy sell down! When a rebound is imminent, it's pretty obvious and one can see it. The best game plan is to stay sideline. This meltdown got to be one of the worse we ever witnessed since 28 years ago where SGX's action evoked memories of the 1985 Pan-Electric Industries crisis, in which several stocks were suspended by the regulator before the exchange had to be shut down.
There is definitely fear now on these pennies to go sizeable defaults if clients cannot or refuse to pay for their stock purchases. These losses could end up on stockbrokers' laps.
Ronald K - Market Psychologist - The Big Speculator
