STI don’t look good. Should not long until signal of reversal shows up.
Last Friday 14 Jun 13, the STI went back to above its support of 3140 to 3150. The previous day was a false broke down.
Today some counters are showing signs of support and possibility of technical rebound. I would say that at this juncture, the index and some blue chips are deeply oversold and very near to support and showing strength to rebound.
I entered into the market today with a low risk entry and tight stop.
18 Jun – The market rebounded. My positions are positive.
20 Jun – Fed Chairman Ben Bernanke suggested that strengthening economic data could enable the Fed to start gradually reducing its stimulative bond-buying plan resulting in massive sell off in the markets. I am still holding on the my counters, following my trading plan. Will cut it when it breaks my support.
21 Jun – DJ -350 pts. Support was breached. STI gap down. I closed all my position. It really a pity that the market rebound was totally crushed by Bernanke’s talk.
I think that the market will be sluggish for the next 3 months at least.
Sometimes, it is rather interesting to see what the reporters wrote. When you read the newspaper it is already too late. Rather useless and to the point of stupidity.
Correction, profit taking, retracement, you name it.
This shows that a stop loss and an exit plan is definately critical.
The question now is where is the support?
Try to understand this – a support is only a support when it is supported. Price action rules.