Monday, 7 May 2012
Do not Fear this STI Down Day!!! It is a buying opportunity!
Today STI went down BIG, 65 points. This is the biggest one day loss this year. In the morning, I received a call from one friend asking me should he sell away. He told me that he was worried this uncertainty in Europe elections would be ongoing for a few months. I think today a lot of people acted like him, and may have sold away their losing positions.
In fact this STI down day today and Friday's Dow Jones decrease are all predicted. That is the reason we ask everybody not to enter position before last Friday.
Check our recommendation here:
This sell down to what we think, is temporary. We are in fact looking of going long in any opportunities. We think you should too! This selldown is because of the sudden panic in the below expectation of non-farm payroll. And this will be forgotten in the coming days leading to FACEBOOK IPO on 18th May, next Friday.
Our view is that the leading bankers and Wallstreet big boys are betting BIG on this IPO of the century. They wouldn't want the market to collapse to a point where nobody want to buy this stock. So do not worry, we are confident of a rise in market SOON!
For stock players, you may enter now. For options players, wait for the market confidence to be slightly up b4 entry, like wait for a up day.
Trust me, selling into this PANIC is definitely the worst thing you want to do!! BUY instead!!
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