These few days fall is attributed to bad earnings results. A few days back, we did encourage everyone to look at some stocks and pick up some going into the holiday season. Mid term wise, we continue to think that the setback is temporary.
Short term wise, we did not expect some of the earnings results like Google and MacDonald to influence the market so much these couple of days. Today Dow probably would end triple digit down. It is down 150 points now..
Short term, we did indeed got it wrong in asking everyone to look at stocks 3 days ago when Dow rallied for 2 straight days. We should have waited for Google earnings to come out first as I predicted there may be a sharp fall that might create waves in Wallstreet. My remedy suggestion now would be:
1) Wait for next week Dow to stabilise amid the small panic today. It happens that today marks the worst day of Wallstreet history when in 1989 19th Oct, the Dow crash by 20% in 1 day. So some traders might be apprehensive today too.
2) Keep a lookout on Apple earnings on thursday after market close US time. If possible, wait until apple confirm a positive earnings beat and the market rejoice before trying to pick some stocks.
3) If you want to go in b4 thursday as market might recover a bit, PLEASE pick those stocks that are good in their earnings this season or last. For US stocks, some companies already issued their earnings results. For Singapore ones, it is a bit tough as you can only based your judgement on the last and it may be near to this season earnings release date already.