Sunday, March 18, 2007

As in heaven... as on earth - signs in the sky

There's so much uncertainty in the market nowadays. STI is making bigger and bigger swings daily ranging from 20 to 100 per day, something that I haven't seen before. The best thing to do now is really to stay on the sidelines to wait for direction before plunging in.

The big question here: is the correction really over, or has it just begun?

Nothing can tell the answer. If you ask me, based on the charts, STI has more room to go down. I'm quite bearish and I do have put warrants on STI, so do take my point with a slight dose of skepticism. STI made a low high already, all we need is a lower low to establish the downtrend. It's hard to say.

People are raving over astrological predictions on stockmarket. Do take this with an open mind, don't dismiss things that you can't rationalise. The recent ones I've heard is that tmr (I think) has got a solar eclipse and since it near another lunar eclipse, historical records shows this kind of astrological charts signal a crash, as shown in the past. Can we project the past into the future? Well, sometimes we can.

The ones I do believe is Bradley turn dates. It's days where certain planets are aligned and it does correlate well to market turning points. There's no way to see if the market turns up or down, so that's the catch. The most recent ones was on 10th March this year. STI was near it's high after rebounding to around 3190 and it fell 130 points within 4 days around 10th march.

Want to know the next one? It's on March 20th, Tuesday.

China raised its interest rate to curb its very hot economic growth, so HK/China stocks should see some reaction. Maybe it might have been factored in already, seeing the drop last week. Bad economic news for US persist and that's the more important macro economic issue we should be concerned about.

Dow is down 50 points last Fri. We'll see if tmr STI can stand firmly on its feet.