Today STI drop another 47 points at the close, dropping past 3300. During the day, it actually went to a low of 3231. 3300 seems to serve no barrier or support to a falling knife. It is getting tougher to buy stocks now.
As mentioned in the last article, we feel that if 3300 does not hold, probably STI has a chance to drop to 3100.
It seems unimaginable just 3 weeks ago. This is the stock market! Falling down a cliff is always faster than climbing a mountain! A sharp index drop is always faster than a rising one.
Here I would like to offer some of my views regarding the market.
1) If STI does not rise back above 3300 in 5 days, avoid trying to buy the market bottom.
2) If STI does drop to 3000-3100 in the next few months, please start to accumulate! This is what I called MAKING HUGH MONEY! You dont get rich by buying at 3450. Buy at 3000-3100 if it reaches!
3) STI does have a short term support at 3150 should it reach. Let us see what happens in the US market then.
4) STI has a chance to rebound above 3300 this week IF US's non farm payroll report is great, or else I do not see any stimulus for STI this week.