Buy HIGH sell LOW, Huh?

A sea of red from Asia, UK, Europe and to the US....

It was just only a week ago where most, if not everyone were so excited with the global market rally.

The US major indexes were testing the resistance;

·         Dow Jones Industrial was at 13000

·         S&P 500 was at 1370 and

·         Nasdaq was at 3000.

(Did you read my post on Feb 7^th – Did you know? The BDI theory and four weeks henceforth....)

Similarly, emerging markets, BRIC, Europe, and Asia Pac were extending their weekly gains.

Newspapers, financial magazines, online financial providers were teasing the audience (especially those who missed the January rally – Tug of War – Part 1).

As you all probably know, I exited in mid February – safe and sound with a handsome profit.

The big boys, fund managers, big fund houses were also keen to take profit. However, to take profit they need to sell. That’s a very good point.

(Tug of war – Part 2, the direction the market was heading was unfolded. I was being polite by telling the audience, not to be a ‘sucker’!)

They want to sell but who is going to buy? The fund managers, fund houses, big boys bought low in Oct/Nov and they want to sell high at around late February. Yes, you guess right. Those who missed the boat, etc might just be the buyers; the big fund managers, fund houses want to sell.

The news acted as the middle-man (putting a carrot for the greedy and the ignorant).

Imo, once the ‘quota’ is achieved, Murphy’s Law will step in. You may just watch how the US markets will open tonight in the next 30 minutes.

My important point for the above post is that Be very careful on news that you read – you may just be the substitute the market is looking for.


Updated 11pm, Singapore time. Note that the current low is 12,800. If DJI closes below 12,800, the next support level would be 12,300-12400 level.

My next strategy:

While investors may start to fear, I would be watching very closely when this correction would end and planning my next few entry points.

The BLOG post that precedes the headlines
ONE step Ahead