3 pieces of news rocked the market yesterday.
1. Govt issued a new ruling to cool property sector
2. US hedge fund went burst
3. Rumours has it that there will be trading curb due to recent fanatic surge in penny shares
Now we know why property counters ain't moving recently despite STI goes into unchartered waters. Well what's new? Price actions always come before news. US hedge fund went burst is nothing new. So what in the world happened?
Last night US showed some strength when it manages to close a small red. Nikkei had already gap up and rebound. We are poised to rebound too. Watch for strength in the rebound for clues of if this is just a blip in the uptrend.
As for construction and property sector, i be watching how market react to the new ruling.
I sold Noble, StraitsAsia, Swiber, Yongnam, CSC during the plunge yesterday. Even if market was to rebound from here, i have no regrets. As traders, the most important thing is to manage our risk and protect our profits. If everything is fine, we can always buy back what we have sold.
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