Market Views...

Good evening,

global markets are still in a bearish trend generally, short term wise bullish as we are in a technical rebound. now the question is what next?? stabalise or continue the downtrend??

areas to note for this rebound is that the strength is good. good means a likely base/stabalisation of price may form to allow the rebound to continue. in this case, we remain cautiously bullish and wait for retracement to pick up strong counters. make sure that this rally is not negated in the process, meaning the lows are not broken.

DJ closed down on friday, which presents an opportunity for intraday long plays as general public will panic and throw out their holdings. remember, i said intraday, reason being this rebound is volatile and the retracement might force you to get stopped out for contra plays. stocks in general are trying to form a base, so take note of how things play out in the next few days.

things to note are further rate cuts by FED and inflow of funds from China into our market. i know many of you look for clear answers of up or down from your respected "gurus", and when 1 wrong opinion is given by them, you will hate them for that mistake. haha, many of sure cases is happening due to the volatile market recently. i hope you understand the importance of risk management. do not blindly follow your gurus just because they seemed to make accurate calls for a period of time.

conclusion??
remain cautiously bullish, wait for retracement of your favorite strong counters before loading. make sure that retracement is not excessive. in view of the mid term trend still being bearish, limit your exposure in case this rebound turns into another dead cat bounce.

feel free to post comments, your own views, or criticisms...

enjoy your new trading week... Heiwa