A lot of
people asked me, FED had delay the tapering but why is it that on Friday, DOW
dropped by 185 points.
5-August to 27-August (in 3 weeks time) DOW dropped more than nine hundred of points. Then it started to turn and went up nine hundred of points. Covering what DOW lost in August and even breaking its history record, hitting 15,676. This was what I said and meant about riding on roller coaster.
Investing in stock market, we need to understand this "buy on rumour and sell on news". Remember I said that Bernanke wouldn't want to become the 历史罪人.Economists, traders and investors knew that as well. Because of the "buy on rumour and sell on news" and "历史罪人" big fishes went in, moved the market before the small fishes act. And they sold after the announcement/news released. Look at the Friday volume was 2.5 times greater than what we see over the normal trading days. So small fishes, whom are you actually buying these stocks from? Yes, those professional investors and traders. Just rewind back when Bernanke announced QE3, that few days and weeks, market went up or down.
The pulled back is good. We need consolidation. Base on TA, market is an up trend. However, as I said we are riding on a roller coaster, German Election result which will be releasing soon, debt ceiling, which we may see drama going on. And after this what next? Tapering is being delayed and not cancelled. Trade with care.
What about STI? It hit 3260 resistant. Therefore, we see a pull back. How will the market move over the next 4 months? Three possibility. I shall not make any guesses, instead, letting the market tell me everything. TA shows up trend today doesn't means a week later still showing up trend. Just trade with care. Don't be a goalkeeper. Do not buy from the traders and investors who are selling.
5-August to 27-August (in 3 weeks time) DOW dropped more than nine hundred of points. Then it started to turn and went up nine hundred of points. Covering what DOW lost in August and even breaking its history record, hitting 15,676. This was what I said and meant about riding on roller coaster.
Investing in stock market, we need to understand this "buy on rumour and sell on news". Remember I said that Bernanke wouldn't want to become the 历史罪人.Economists, traders and investors knew that as well. Because of the "buy on rumour and sell on news" and "历史罪人" big fishes went in, moved the market before the small fishes act. And they sold after the announcement/news released. Look at the Friday volume was 2.5 times greater than what we see over the normal trading days. So small fishes, whom are you actually buying these stocks from? Yes, those professional investors and traders. Just rewind back when Bernanke announced QE3, that few days and weeks, market went up or down.
The pulled back is good. We need consolidation. Base on TA, market is an up trend. However, as I said we are riding on a roller coaster, German Election result which will be releasing soon, debt ceiling, which we may see drama going on. And after this what next? Tapering is being delayed and not cancelled. Trade with care.
What about STI? It hit 3260 resistant. Therefore, we see a pull back. How will the market move over the next 4 months? Three possibility. I shall not make any guesses, instead, letting the market tell me everything. TA shows up trend today doesn't means a week later still showing up trend. Just trade with care. Don't be a goalkeeper. Do not buy from the traders and investors who are selling.
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