Market Talk...

Good evening babes and hunks,

A summary for today
Asian indices gapped down as expected and continued their plunge. after lunch, we experienced a period of volatility where bargain hunters, rebound speculators and short covers entered followed by selling on strength and some shorts re-entering. hsi closed near day low but sti made a fast recovery near closing due to a jump in the EU markets.

A look at the targets
the 1st target was breach quicky in Asian indices. any signs? US futures breach their first yesterday. what happens when a target is breach quickly is that a pull back force will enter and gets stronger as it moves faster and further from it without stopping. STI pulled back straight to the 1st target @ 2850.

Rebound in the making?
i will not say a rebound is in the making, but rather a norm movement in a volatile bearish market. clear rebound signs are yet to form, so do not turn over bullish.

conclusion?
i rate a high risk short term long position. high risk because the signs of rebound are unclear, long because of a possible pull back due to big deviation from neutral prices and a slight intraday turnaround signal today. keep cut loss tight.

i believe DJ and EU will do some recovery relative to 5pm today causing nikkei and hsi to open gap up, influencing a bullish tone in sti. keep a level of skepticism in this rebound and prepare for volatility.

Heiwa...the DOM