Tuesday, March 06, 2007

Rebound

Today market worldwide made a U turn.

It's not just another rebound. It's a bit of mixed signal to me. First of all, market volume seems low, but it could be because people are cautious after a major selldown so they won't return in flocks when we're still in bullish phase. Another thing is that STI stayed far from ema100 days without even touching it. Today, we up another 54 points with strength (though low vol).

HSI also stayed cleared of ema200 days, when it opened at +300 points and closed +400 points. Strong rebound. The charts also looked poised for a reversal in trend. But can't be sure yet. At least the immediate danger of falling below ema200 days for hsi is over. I'm looking at a rebound to a level around 19,400 for HSI. There's the ema100 days support turned resistance level. That's also the horizontal resistance line, so might be rather significant. I'll be looking for puts around that level if I didn't detect strength to break the resistance. If it did break that resistance, calls then. HSI is only 400 points short of that level. I think it depends on how dow performs tonight. Dow's future is around +100, so should at least have a good opening.

I made use of this rebound to sell of 1/3 of longcheer at a hefty loss of 48%. This is because I want to lighten up more load in case it tanked down again. I'm actually quite weary of today's rebound. Even though STI immediate danger of falling below ema100 days is over, I think this is just a technical rebound because of such a big fall on monday and the whole of last week. Could be a bear trap. Unless indicators show me that reversal is indeed due, I'll take it that intermediate trend is still down.

Europe market is mostly green. Dow opens +60 now. Too early to say how it'll close.

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