Thursday, June 20, 2013

STI - Downside Resume - Double Down!!

On 16 June 13 (Sun) I posted a trend change, and announce STI uptrend, I was right for only 3 days.

Due to Fed's affirmation that QE3 will be scale down beginning end of this year, market has switched to "cash-in" mode, to sell away holdings and convert to cash / bonds or whatever "safe assets" investors could find.

The STI has shown a failure to breakthrough the downtrend, failing to even touch 20d MA, its price & 7d EMA have taken another dive. This is only beginning of the resumption of "double down"!

Its time to review your holdings, sell if you are unsure or afraid to hold your investments (stimulate dropping another 25% or so), if you can stomach that kind of fall, then hold & add on later.

If you are in losing position, inflation will make everything price higher in mid-term, so if you are confident and wish to hold, go ahead. Otherwise, you can always convert to cash & short later. This apply to majority of stocks, but still some will go against the down trend, eg. medical supplies, mask manufacturers etc. (trust me, this quarter's earning will jump, no thanks to Sumatra's forest fire).

For those bold, and can monitor your trade, try shorting the market with Warrants for SG, options & reverse ETI. All the Best to your trading, may the Force (Trend) be with you ( * - * )")

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