Today STI opens above the critical resistance 3200 and yet closed the day below yesterday low! This is clearly a symptom of the index getting sick! From a technical view, price has failed on 2 consecutive days to overcome the supply line, and this aligns with my view that we are seeing 3100-3120 region soon. Macro level, we have the following issues like inflation, china interest rate policy, European debts weighting on investor sentiment. Coupled with the coming of CNY, investors should be careful!
In my last few post, I mentioned that China Gaoxian and LongCheer are both having severe mood swings. And we have witness how they are revealed in the past few market days! When stocks go depressed or sick, they need time for medication, and need rest for a period of time before gaining momentum. Of course, they do recover after a prolonged period while some unlucky one never. Ouch, that hurt!
Always plan your stops!
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