Monday, March 05, 2007

World market crash day...again

World wide crash day again.

HSI crashed 770 points while STI tanked down 140 points before recovering in the afternoon session to close at -90. This was followed by last fri's Dow which fell 120 points. Nikkei also didn't lose out, fell -575 points.

HSI broke 100days ema support. Dangerously near to 200 ema days support. If 200 days ema support also failed, it means that the long term trend for hsi has been broken, we can all say bye bye to HSI. I don't think it'll be broken that easily. I expect HSI to rebound upon touching ema200 days. But this rebound won't break the downtrend.

Today I bought two put warrants for HSI, sold within 1 hour and made 470 bucks. It's scary how fast my gains are realised. Today, if you anyhow whack puts for hsi, you could have gotten at most 50% returns. That's insane. I've never seen the ferocity of the bear attack. I'll remember this time forever.

STI also gone case. ema50 days broken, approaching ema100 days already. Intra day ema100 days had already been broken, it's just that it recovered, which can be taken as a good sign. Roughly, I think another 1 week more of selloff? I'm being optimistic here.

I realised all these indicators that I so depend upon are lagging. I must go and read up on those flag formations, triangle breakout etc. These are forward looking with a price objective too, so that I can expect what sort of price target for stocks. That's the homework I must do.

In the meantime, I'm looking at selling half of longcheer. Not decided yet. Dow's futures contract is down 90 points. Europe all down. We can only guess how bad Dow will end. If it's another 100 to 200 points drop, tmr I'll go puts for hsi again. HSI is at the fence now. If it breaks below ema200 days without strong rebound, I'll buy more puts. If touches then goes up, calls for me. Simple right? haha

Who has stocks which didn't kena the selldown? haha...from what i can see, all have red arrows pointing down. What a way to enter fiery pig year, haha!


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