Despite a muted gain in the US market, we ran up on regional strength, as well as on the possibility that there will be some more perks from the US tonight. Our broad market run-up was the best in the region in terms of percentage points. Unbelievably, STI surged up another 67 points to close near day high at 1,758. Volume done was impressively high again at 1.56 billion shares worth $1.41 billion. Though it has been confirmed by many analysts that the market has bottomed, the strength of the market is irrational. It is really hard to believe that the stocks could get pushed up so high so quickly, all thanks to the institutions. They have been buying from us all this while. Ironically, just 2 weeks ago, people were dying to get out of their stuck positions. Now, to our frustration, the prices kept going up once we cashed out, to the extent I no longer dare to advice people to sell anymore for fear of the market going up further. Then there are investors feeling so desperate to jump into the market right away rather then to risk watching all the boats leave one by one. What an extreme change in psychology right? I guess this is the power and evil of the institutions at work. Of course I may be wrong entirely, but right now, the alarms are flashing brighter and brighter as the market climbs higher within such a short time span. The market should be due for a correction soon. Let's be more careful here and not get sucked in by the temptation. This is simply a trader's market now. If you are not able to play hit-and-run, then stay out first and wait for some pullbacks.
As I have reckoned that people are playing up the markets due several important events these 2 days:
For tonight, there will be the release of the final GDP, weekly jobless claims, Geithner to unveil plan for overhauling the financial system, and several representatives form the Fed will be speaking.
On Friday night, there will be the consumer confidence report while President Obama will be meeting bankers.
Therefore, there might be some play ups in the market as there is also the possibility of some month-end window dressing effect this week. From next week onwards, markets should start retreating back down. Then it will be our turn to enter again to find some good buys.
Note: Kindly read my first post, About Myself, on my disclaimer. Thank you.
For tonight, there will be the release of the final GDP, weekly jobless claims, Geithner to unveil plan for overhauling the financial system, and several representatives form the Fed will be speaking.
On Friday night, there will be the consumer confidence report while President Obama will be meeting bankers.
Therefore, there might be some play ups in the market as there is also the possibility of some month-end window dressing effect this week. From next week onwards, markets should start retreating back down. Then it will be our turn to enter again to find some good buys.
Note: Kindly read my first post, About Myself, on my disclaimer. Thank you.
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