Nasdaq and the DOW performed quite well today. Today is the day I am looking for. I know that all traders in Asia seem to be in a panic recently with panics happening to Thailand or Indonesia or Philippines. STI and KLCI is not spared.
But I think these few days you may see a rebound, or at least a halt to the drop. Like what I always said, STI 3000-3100 is the region I will be looking at picking some stocks. Today STI reached that point. All banks stocks gapped down, but ended up well. This shows lifeline in the banks.
We hope that you have done your homework, as we think that you, like us may try to test water by investing in some stocks, even the sold down index stocks. Indices may still drop, but we think not much in the short term.
STI's lowest we think should be 2950-3000. Today it reached bottom at around 3050, almost there. Anything below 3000 should be a bargain.
Nikkei futures is also up with around 300 points. Jakarta index we think might have reached a bottom. We expect Jakarta strong support to be 4000. Today it is at 4170. We are perhaps against all analysts and economist in the Jakarta market now with this stand just like when Nikkei crashes a few months back! We did said Nikkei has reached a bottom at 12800 when all thought it would crash further.
Chart on Jakarta collapse:
But having said that, money management is key here. What I suggest is break out your money into 3 portions. ie. If you intend to buy OCBC with $30000 investment, buy with $10k first. Prepare to accumulate again when it drops by 25%. The 3rd time is always when it drops by half, which we think is impossible to reach in a bull market.