After 3 weeks of inactivity, finally the market hots up. Stocks started the brief rebound last week and today it all came into an abrupt end. I am only too glad that the market tanked today otherwise it is really very difficult to understand it. At least now i know the simple rules of the market still works and i am able to get the direction right. Despite all these talk about de-couple from US bla bla bla, today Asia market decided to finally cave in and joined the US in the south pole. As i am writting this, Dow has broken the 11k psychological support. Next major support will be at 10,700 thereabouts. Asia has a long way to catch up since the Mar'08 low is still intact. HSI support is targetted at 20,800 and STI? 2743 should go first.
How do we explain the selling in S-shares? simple, all you need to do is understand why does it go up in such high volume? One of my traing principle, if the stock has higher than usual volume and the price doesn't go higher, it has to come down. period.
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
