So far how's the rebound? Did you make money from the recent rebound?
Let's pull out some charts to look at how the rebound went on different regions and markets.
Taiwan was the strong market amongst all. Natural disaster, Taiwan earthquake. They closed 10 days for Chinese New Year. US and Europe markets tumbled during that 10 days. Back from CNY, first day market opened - wide gap down but end of the day it closed 3 point positive. Moving forward, Taiwan market crossed 50MA, 100MA and YEC. High chance that the Taiwan market will test YMA which is around 8800 point.
Shanghai market, rebounded like a tortoise. Crawling up slowly, small step one after the other. However on 25-Feb, with only 3 days, it wiped out all the steps, back to the base camp and formed a double bottom.
STI, a different set of rebound pattern. Trading sideway for almost 3 weeks before it rebounded 50% of its bae camp.
Europe market like DAX and CAC, it rebounded, then came down again broke down, formed a typical lower high lower low and now it rebounded again and about to test the first lower high resistant.
US market DOW, rebounded then came down to form a double bottom. Last Thursday it broke up. Already 4 days stayed above the resistant level.
Recap, analyse and prepare:-
When market started to plunge on Y2016 opening, we saw the so called experts, analysts.....telling investors not to worry.......... However when markets continued to trade further south on second and third weeks, all these analysts and experts started to tell people sell, sell.....and there was where I saw the sign of market was about to rebound.
Some bullish experts went missing when market continued to pour down. However, last week I started to see couples of them came back and their called was don't worry buy on dip. Today, we have a mix group of analysts and experts called. So who should or you want to listen to?
Recently I have someone asking me, recently they bought OCBC at $7.40 because of ....... and they planned to keep the stock for 2 to 3 years. By then the price go up ....... They asked for my opinion. And also asked me did I buy? Well......... experts had given them the advice.......what else can I say? People just want to hear something that they like to hear, so I wished them good luck.
As I have been always said this - don't listen to others, do your own analysis and homework. There is no such thing as easy money.
Today market unlike 2009 crisis which came fast and fierce. I mentioned this since early 2015 today market is like 温水煮青蛙 (I even gave example of boiling a "ba ku teh" soup). The market will tear you piece by piece. Ask yourself, since 2015 how many times you seen this - whenever you feel/think that the market 完蛋了, the hope and greed return.
Low interest rate. Countries like the Europe, Japan.....are printing money. So where do all these funds go? Yes, the investing market. The funds move from one product to the other product, one region to the other region.
I also keep saying this - today market is mend for trade and you trade what you see and not what you think. Big picture, the Europe and ASIA markets are inside the bear territory. What I am seeing now is a rebound. As you can see, there are many different ways/patterns of rebound. Basically a rebound plus consolidation can take 2 to 3 months or even longer. I am watching the US market. She has not fall inside the bear territory yet. When she does, there is where the second game begin.
Beside that I am watching how the analysts and so called experts.......retail investors/traders call/react to the market. Big boys are going to use the whatever economic numbers, politician involvement like the interest rate, QE, policy........to move the market around. So trade what you see and not what you think. Never think that you are smarter than the market.
Let's pull out some charts to look at how the rebound went on different regions and markets.
Taiwan was the strong market amongst all. Natural disaster, Taiwan earthquake. They closed 10 days for Chinese New Year. US and Europe markets tumbled during that 10 days. Back from CNY, first day market opened - wide gap down but end of the day it closed 3 point positive. Moving forward, Taiwan market crossed 50MA, 100MA and YEC. High chance that the Taiwan market will test YMA which is around 8800 point.
Shanghai market, rebounded like a tortoise. Crawling up slowly, small step one after the other. However on 25-Feb, with only 3 days, it wiped out all the steps, back to the base camp and formed a double bottom.
STI, a different set of rebound pattern. Trading sideway for almost 3 weeks before it rebounded 50% of its bae camp.
Europe market like DAX and CAC, it rebounded, then came down again broke down, formed a typical lower high lower low and now it rebounded again and about to test the first lower high resistant.
US market DOW, rebounded then came down to form a double bottom. Last Thursday it broke up. Already 4 days stayed above the resistant level.
Recap, analyse and prepare:-
When market started to plunge on Y2016 opening, we saw the so called experts, analysts.....telling investors not to worry.......... However when markets continued to trade further south on second and third weeks, all these analysts and experts started to tell people sell, sell.....and there was where I saw the sign of market was about to rebound.
Some bullish experts went missing when market continued to pour down. However, last week I started to see couples of them came back and their called was don't worry buy on dip. Today, we have a mix group of analysts and experts called. So who should or you want to listen to?
Recently I have someone asking me, recently they bought OCBC at $7.40 because of ....... and they planned to keep the stock for 2 to 3 years. By then the price go up ....... They asked for my opinion. And also asked me did I buy? Well......... experts had given them the advice.......what else can I say? People just want to hear something that they like to hear, so I wished them good luck.
As I have been always said this - don't listen to others, do your own analysis and homework. There is no such thing as easy money.
Today market unlike 2009 crisis which came fast and fierce. I mentioned this since early 2015 today market is like 温水煮青蛙 (I even gave example of boiling a "ba ku teh" soup). The market will tear you piece by piece. Ask yourself, since 2015 how many times you seen this - whenever you feel/think that the market 完蛋了, the hope and greed return.
Low interest rate. Countries like the Europe, Japan.....are printing money. So where do all these funds go? Yes, the investing market. The funds move from one product to the other product, one region to the other region.
I also keep saying this - today market is mend for trade and you trade what you see and not what you think. Big picture, the Europe and ASIA markets are inside the bear territory. What I am seeing now is a rebound. As you can see, there are many different ways/patterns of rebound. Basically a rebound plus consolidation can take 2 to 3 months or even longer. I am watching the US market. She has not fall inside the bear territory yet. When she does, there is where the second game begin.
Beside that I am watching how the analysts and so called experts.......retail investors/traders call/react to the market. Big boys are going to use the whatever economic numbers, politician involvement like the interest rate, QE, policy........to move the market around. So trade what you see and not what you think. Never think that you are smarter than the market.
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