China tightening move may have dampened the spirit and capped further upside, but as I have argued earlier, I do not see this as a fundamentally flaw policy and in fact think its for the better going forward.
The question however at this juncture is where is the market heading next - and from the way it look....maybe nowhere.
Is the market going to rally further? I doubt so. The expectation of a better 4Q has more or less been factored in. If any upside, it should be limited.
Is the market going to tank? I doubt so too. No reason for it to tank. If any, it will be some profit taking action.
Turning to the chart for some clue...I notice something.....Did u see what I see?
It seems to me that the indexes may have flattened lately from its uptrend (yes it is still technically on uptrend) and is entering into a sideway trading phase, or technically a time correction phase. This I believe is reasonably sound considering the arguement above that any pricing correction should be limited.
Keeping this in mind, I believe we have entered into a sideway trading phase until the market find new momentum and reason to see the breakout it required. Hence for now...may be buy near the support and sell near the resistance is the only option.
DJIA 10900 - 10200
HS 20285 - 23115
STI 2700 - 2960
Maybe its just my sentiment today...hopefully.
God Bless!
This blog is a selections of my investment views to my client. If you find it useful or have additional information to share, please do let me know. These blogs are my personal views and is not meant to solicit any sales or investment on any securities or investment. I may have vested interest in some of the counters or investment products, hence please invest at your own risk. As usual invest in what you understand and do your own homework as usual.
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