Tuesday, January 25, 2011

Market Sentiment, HL Asia for shorting

Recently many client has ask about why the market behave like this, i believe the reason could be that many investors are keeping watch over the US Federal Reserve's policy announcement on Wed, while concerns about further policy tightening from Beijing continued to weigh on sentiment after the state-run China Securities Journal said in a commentary Friday that the first rate hike this year could be around the Lunar New Year holidays in early February..
STI is now at the support zone of 3182-3190, with the next key support at 3120. With continuous 2 day of closing lower than the open, there is a possibility of the short term correction may continue this week. As such, we shall only enter the market when the dust had settle and wait till market give us clear signal for entry.

HL Asia, has formed a decending triangle chart pattern, if it break the support, we can see further downside. Can consider to Short using your CFD account if tomorrow drop 1 bid below today's low, stop loss at 3.04, timeframe is 1-2week. Do note that this is a low volume stock.