Wednesday, March 07, 2007

Rebound silenced

HSI, Nikkei and STI all closed weaker in tantem after a strong rally yesterday. A reminder to all, in bull market, we want to see the day close higher, in bear market, the day will close lower.

A reversal will not be strong unless it goes through a series of natural rallies and then declines to form a bottom. It is at this bottom we will launch into a new bull cycle. However as there is little or no news until the next earnings in July, market may range trade and the lowest level I eye will be 2880. Otherwise I will be looking out for signs of a bottom. Those interested, I implore you to read through my archives of May'06 to Aug'06. It will give you a good feel of how a bottom will be formed.

There is a possibility we test and break 3k psychological level by Friday. With HSI's 19k and Nikkei's 17k giving way, once DJ's 12k give way, no chance at all for STI.

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.