This month has been a frustrating stretch for me. I tried to short the SnP several times when there was a hint of a drop as i was anticipating it from the indicator divergences. It isnt a good feeling when 4 of my trades are stopped out in a row, only to miss the final valid trade because i did not put it up. I guess i am an amateur after all.
Well, the drop could take SnP down to 1260, and even 1240 if the previous support does not hold. I am a follower of Carl Futia, you guys can try googling his blog. According to him, this drop is telling of a 50-75 point break but it will obviously not be a straight drop. He has my respect due to his track record in full time trading so i do take his views seriously.
Putting this into the Singaporean context, STI is likely to be on a downward trend from here, with commodity stocks like Wilmar, Golden Agri already taking the lead. Genting has also fallen to near the $2 level. I still view this as a bull market, so this is a good chance to load up, especially Genting. I will look for levels to load up once i see how it reacts to the 1.95-1.98 support region. Meanwhile, for those that are not already short, i suggest to stay out of the market. Definitely no longs yet.
Happy Chinese New Year in advance! =)