The Dow Jones got sold down -800 points early last evening. It was one of the worst night in history where the index drop so fast that it freaked out many retailers in the shortest amount of time. Soon, the Dow recovered and started to rebound. The amazing thing was it was a V shape rebound with no signal whatsoever. Study the 5 min chart and you will see the bottom where I believed the index had touched a fear point where it begun to sprung up at the demand zone. Towards end of day, it closed high but it hit a major supply zone where it's taking a breather now. I was pleased profits was made i the Dow last evening and those profits were my mentees', not mine. Congrats!
Back in Singapore, blue chips did not move much. The banks gap up 15-20 cents and started to simmer off. Property stocks like Capitaland gap up and simmer back near yesterday's closing price. Stocks were pretty stagnant even thought there was almost a +800 points recovery in the Dow last evening and hence with this activity, it alerted me to stay vigilant and watch first. Very soon, the signal to long will be here. Will you be there to long soon?
Ronald K - Market Psychologist - A Stock Market Opportunist
