Market Comments (STI) for Week of 17 Jun 13

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.

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