Market Wow ...

good evening,

summary of today

the huge gap up of today by all asian markets are expected as mentioned. distribution was occuring at the start, general public buying while holders sell their overnight holdings. then the plunge came, a common result after distribution. signs?? excessive gap up and lack of push factor after opening.

shocked by the fast recovery?? not really, this plunge is not bearish, instead, the down move is a norm relative to the current volatility. remember, absolute figures are a phantom to manipulate the minds of players. did you buy because you were extremely bullish after the rate cut at the high in the morning?? did you panic when the turn came in suddenly and reversed out your gains making you sell at a low?? this is the art of psychological trading which i will not reveal here.

a big nice rally came in after lunch pushing all indices to new day highs. which is also after the smart money finish buying all your cut losses at the low.

market review

i am turning neutral to bearish from bullish yesterday. reason?? indexes already pulled back to neutral position and the rally today is strong but not strong enough to call bulls. general stocks also lack the strength of rebound. remember, relative to volatility, not absolute.

conclusion

remain neutral. wait for signs.

no daily calls as pending formation.

enjoy trading... Heiwa