I refer to the high volume done today and the strong finishing actions in the futures market. We stands a good chance for a rebound in coming days. With the heavy volume marked, we saw how market recovered. I took small cosco call warrants with 2 minutes to closing when i saw FTSE coming back strongly and simsci gives a late late show. I was deciding between getting a HSI CW or an index stock. To take advantage of a rebound, I must go for index stock or index as second liners may not move. The logic is clear, when index rebounds, those stocks in the basket will move. Period.
Ah Ben cuts rate tonight. Was it a coincidence that FTSE & Simsci rebounds late in our trading time? Alas, market has never changed, the clues are there, I just need to be observant. As this is the second day of a 5% decline, a whopping 10% off the index!! Anymore, i suspect the circuit breaker will be on! Hence whole day, i have been looking out for clues of a reversal day, formulating scenarios in my head. At 3pm the first sign was there, but it was a trap. HSI futures rallied from -1800 to -1000, only to close -1800. Then with 10 mins to closing, FTSE recovered strongly suggesting they knew something and our simsci rises from the dead and at one stage was positive. The lowest of the day i think was -170s... These are the signs i needed to try long. This is even with DJ futs staring at me with -650. So long there's a reason to be long, i shall try. I assessed my risk and put up a small position. For if i'm wrong, i want to lose small. But if i'm right, and this turns out to be a Key reversal day, the reward will be many times more than the risk i took.
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
