Sunday, May 14, 2006

No eyes to see Stock Market tomorrow

Isn't my title interesting! haha With US and global markets facing a sell off, what chance do our little Singapore Bourse has to defy the order? If you don't want to spoil your mood on a Monday, do not see the market at the opening bell. That's the best way to avoid selling because of fear. For me, i will be examining the damage and make my decision based on what had happened and not by anticipating what will happen.

In all dead seriousness, I analysed Dow & Nasdaq charts. The sell off was with volume and I have not seen an end yet. While many like to predict a technical rebound on Monday, I prefer to stay aside and let market form a bottom before I get vested again. My rule is, when I buy, i want to make sure the major trend is working for me. Currently there is too much uncertainty.

Complacency is the downfall of many. How did many people get caught in the 2000 bear market? The recent strong rebound of China Stocks reminded me of that. It will cause many people to kick dirt and exclaim "Shouldn't have cut lost! My stocks rebounded!" The next time their ChinaStocks retraces, they are not going to sell because they "think" it will rebound! This is exactly what happened in 2000 where many thought it was normaly retracement because they seen how fast and furious tech stocks rebounded. In fact some of them bought on the way down. Imagine owning Chartered at $10, $8 then $5. OUCH!

Remember what I said after Elections? Isn't it uncanny that why after elections there will be big sell offs? Now, who says history doesn't repeat itself? keke Now, let's see if history repeats itself at the World Cup. :D

Patiently awaiting the golden opportunity.