Friday, February 11, 2011

STI broke crucial support!

STI down 47, to 3103 today! The 3120 did not hold as well as i expected. As this crucial support has been broken, we might see further downside in the next 2-5days. The next support can be found at 3050 and follow by 3000. Many asked why the market drop, well there are many reason here and there (china rate hike, US market 8days winning streak may end with correction or maybe a lousy budget announcement). Well.. i believe many shortist had entered short position when STI crosses 3120 which escalate the plunge across the board(My view la). So next is to find, where will they cover shorts?

The pic beside is the list of stocks that have been performing well for past few month, long term still uptrend, but mid term trend is bearish. If continue to drop, the long term trend will change its trend. Hence get out if it drop 1bid below prior day low. (those stocks the has been bearish for some time might not be shown here.)
If you not sure, do half.