Wednesday - 27 Feb 2008
8.50 a.m. - Malaysia time zone
Yesterday, the market open at 3900 and closed at 3792. The highest was at 3903 and the lowest was at 3760.
After 6 consecutive days of white bars, the market decided to put a correction yesterday. Was it a correction or probably the reversal point of the bullish sentiment?
I made a loss yesterday. After opening, the market fell quite sharply but after 8 minutes, as there was a very short "consolidation period", I managed to put a buy at 3875 and also put a stop loss at 3865. Anyway the market was not in my favour . Instead the market kept pushing southwards especially after beating the level 3830, just like I mentioned yesterday. So I loss 15 points.That's it, you cannot win all the time.Besides there was also no clear formation of trendlines except before lunch break. From my experience, if the market is in the correction or reversal phase, it is better not to take any position especially if the market starts to show sign of , in this situation, going up again.
It still looks like the market is still in the bullish situation;
1) At this point of time, I would prefer to say that if the market opens at 3786 and above and starts to move up and later beats the level between 3797 to 3802 then a buy position can be placed here or if the market opens at any points and later starts to move up to pass the level between 3797 to 3802, then the market is expected to move further up. If the market opens at any point but does not go up beating the level between 3797 to 3804 then the market could be in the indecision period but if the market starts to move downwards and beat the level between 3759 to 3752 then a further down could happen today. If the market opens above between 3802 to 3820 then the market may go up further.
2) Besides the above, also look for a clear pattern of trendlines which you are familiar with. If there is no clear pattern, just stay away.