Tuesday, February 27, 2007

Worldwide market crash (maybe a correction?)

Why did worldwide market crash today?

The most important reason that comes to my mind is the talk by alan greenspan, predecessor of Bernanke. He said that a recession (mind you, he did not mean correction) is hard to avoid for US towards the end of the year. I believe he means this in a good way, because the moment you say that bubble is about to burst, the bubble stops bursting. His words still carry enough power to cause STI to drop like a tank by 70 over points.

Next, China shares is downgraded by some brokerage house (can't remember which, must be those foreign houses since it carries so much significance) as being overvalued. HK is thus affected, dropping 340 points without much resistance at all. Good thing is that HSI is sitting on ema50 days. If it fails to provide support, HSI is gone case. 20,000 is a good point to watch out for.

STI dropped 70 over points today with wide spread market disaster. Not even the big caps are spared. Property stocks like capitaland, CDL, DBS, UOB all tanked down. Basically if you look at the STI chart today, it's one way down. Only towards end of the day we can see some respite. STI sitting on ema50 days too. If it fails to support, byebye.

US side tonight is going to be a very important day. A slew of economic data is going to be released. Besides that, some world news might create some market tension. A suicide bomber tried to kill Cheney when he visited a US military base in afganistan. He wasn't killed but at least 14 are dead. Geopolitical issues at hand here. Europe dropped 100 points as of now...that should be a good sign of where US is heading tonight.

Bad sign huh? Bought some CDL warrants today. We'll see if that's a bad decision tmr. Tighten your seat beats on the way down.

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