A bloodshed or free fall in morning trading caused the STI to lose 260 points in a short 2 weeks trading period. This followed Dow Jones 200 points drop yesterday. We did mention to avoid the market this week as important news could bring the market down. Do not catch the falling knife.
Yesterday the ADP employment figures did go below expectations, prompting the selldown in US. It will be very important now to watch out for Friday's Non farm payroll. Finally now the market has become normal again. Poor reports will now cause the market to drop.
1 month back, because of QE, poor reports mean good, which is the unusual. Now everything is back to normal. I believe if Non farm payroll could not live up to expectations, the US market has a chance to tank further. But of course, if Non farm is good on friday, maybe things won't be that bad yet.
NO PLAY is THE BEST PLAY NOW!!! Keep your money at the sidelines. Be prepared to cut loss once it reach your stop loss.
Do be EXCITED about this drop. We have waited for 2 months already! This is where BIG money is made and changed hands!
STI good support, like what we mention is from 3000-3100. It doesn't seem far now, does it? Everything depends on US stock market now. US Dow Jones has dropped by 600 points form the top only. We expect a Dow Jones 1500 points pullback to be a good pullback. We shall see in the coming months if it does.
Good luck to watching the market! Do your study now, look at those stocks that does not seem to fall yet. These are considered the good ones!