02 June 2006
Reflection
Singapore market may take a few days to weeks to construct a solid standard bottom formation such as a small double bottom before any significant rebound or reversal for all stocks and indices.
Bottom fishing has been proved to be a silly way to make money. Never do bottom fishing in the future until standard bottom formations such as double bottoms form, become mature, break out, being confirmed by volumes and long white and strong candles on the daily charts of many indices or stocks, say, 20 .
That's why I have stopped covering individual stocks until certain bottom formations are formed, which I'm sure have to form before any significant rebound or reversal, considering the huge free fall or panic selling in the past weeks, which have effectively wiped out all the paper profits accumulated since start of this year 2006. Market needs to calm down and rest first.
However, no worry, opportunities will be plenty once the market finds its solid bottom, indicating by forming bottom foramtions such as double bottoms on the indices and individual stocks.
Note that currently Dow and Nasdaq have formed double bottoms on the daily charts, which is an early indication that the world market may have bottomed out. But Singapore market is much worse than US market in the recent plunge. Many stocks are keeping on creating new lows even until yesterday, causing serous damages to the confidence of traders.
All the losses or losses of paper profits will have to come back through proper trading and prudent money management in the future. That's my hope.
Wish all the traders to have a good rest before restarting of the trading game.
Singapore market may take a few days to weeks to construct a solid standard bottom formation such as a small double bottom before any significant rebound or reversal for all stocks and indices.
Bottom fishing has been proved to be a silly way to make money. Never do bottom fishing in the future until standard bottom formations such as double bottoms form, become mature, break out, being confirmed by volumes and long white and strong candles on the daily charts of many indices or stocks, say, 20 .
That's why I have stopped covering individual stocks until certain bottom formations are formed, which I'm sure have to form before any significant rebound or reversal, considering the huge free fall or panic selling in the past weeks, which have effectively wiped out all the paper profits accumulated since start of this year 2006. Market needs to calm down and rest first.
However, no worry, opportunities will be plenty once the market finds its solid bottom, indicating by forming bottom foramtions such as double bottoms on the indices and individual stocks.
Note that currently Dow and Nasdaq have formed double bottoms on the daily charts, which is an early indication that the world market may have bottomed out. But Singapore market is much worse than US market in the recent plunge. Many stocks are keeping on creating new lows even until yesterday, causing serous damages to the confidence of traders.
All the losses or losses of paper profits will have to come back through proper trading and prudent money management in the future. That's my hope.
Wish all the traders to have a good rest before restarting of the trading game.
