It seems like a red red day in Singapore. HSI down by 343 points, Shanghai down by 77 points, Singapore by 23 points.
As what we have anticipated the previous few weeks, we mentioned that Feb is a sideway month where the peak might be reached. We told all to be careful of March or latest Early April. We rang the alert bell earlier than most analysts and please don't trust those who tell you that this run will continue forever.
We are glad that our market predictions have been quite accurate so far this year.
Today quite a number of stocks has already fallen from their high, especially after Shanghai drop because of the housing measures speculation.
It will be an opportunity for those who took action and liquidated some bullish positions, and have the patience to wait.
Pls take note US market has not fallen much yet. We think that the ROT in US has just started but the real impact has not been felt hard. Be careful from now onwards as momentum may take a turn for the worse.
All stop losses must be tighter than usual. If you have never set up your stop losses in the beginning, you probably would need to revise your trading strategy as this is a critical part of short term investment strategy.
I would do a more thorough study of the market again in my next email. For now this week, our advise is to adopt a wait and see attitude before the jobs reports on Friday and don't be hasty to buy stocks now!