Since last month, we continually mentioned that Feb may not be as promising as Jan. Feb may reach a peak and go sideways. 2 weeks into February, you can see from the chart that it is traveling in a minimal range. It is struggling to break the all time high of 14198 which we think is not easy to break. Even if it breaks, be prepared that the more it goes up, the more the elastic band will pull it back.
However I also did mention in my previous articles that do not be worried about any big drop yet. It will continue to come back and test its peak.
We did mention that the fall has not started. In fact, we think the peak has not reached yet, meaning it can still go up a bit. But slowly you might see the bullish momentum diminishing.
Hence particularly this month, you got to place your bets on picking the right stocks to play. Some stocks will see continue to reach new high while others may stay stagnant. The big drop has not come yet. I do not encourage you to short the stocks yet. The best time to short stocks is when we sense that the market is about to be in panic mode because for retailers, shorting is a fast in and fast out game. You need momentum to short the market.
The downward momentum isn't there yet. But soon it will come, we just have to be patient for the fall. I think STI might take a bow at 3330, the last bull high. Whether it breaks have to depends on our US market. 3330 is just like 14198 to me. Do take note I am a bit worried for March.
Cautious is the key now. Selection of stocks is vital. Guerrilla short term trading should be your strategy!