Rotational play

STI down by 47 points.

Looks like support at 3400 is not significant after all. If it doesn't act as support, it just means we have more room to do down. The next point I'm look at will be around 3345. That's the gap that we have to cover, as mentioned in previous postings. It's only like 30 more points to go, so not a problem.

Actually this pullback, unless you're holding major STI index stocks like CDL, capitaland, DBS and such, shouldn't affect the rest of the people. Most pennies cheong. In fact, rotational play seems to be at work, where different sector move up together one after another. Last week was property, then came oil stocks, so tech stocks next? Most of my counters didn't go down as much, and some rose up instead. Volume is lesser than yesterday's. Really no cause for concern.

I think by the end of this week, the gap should be already covered, so that means STI should drop around 30 points tmr. Quite possible.

I decided not to cut swiber yet. Most change my mentality a bit, from short term trader to medium term, where I hold for at least 2 weeks to 1.5 months. We'll see if this works. Strictly no warrants for now. The more I read about warrants, the more I believe they are just things that nobody should try. Risk reward is too high.

Dow at -13 now.