The fate of Dow moving forward

1 de fev. de 2020

How bad did Dow perform yesterday ? Read here

I also mentioned here that I had shorted Dow , HSI as a way to hedge my position.

For a 10% drop, we are a long way from the 600 points drop yesterday! That means, if you plan to short, you still have a good risk reward ratio next week.

Sars 2003 took a quarter before it recovers strongly. If that is a historical benchmark, then we are looking at the earliest March 2020 before we see any recovery. Of course, all this are merely my conjecture and only time will tell what the results will be.

Early next week, we shall see a pullback before the selldown continues.

The market is going to be volatile, so be extra cautious in your trades. If unsure, stay sideway and watch and learn. NO action is better than taking risky action and cause any collateral damages.

2 de fev. de 2020

Nota

reuters.com/article/us-china-health-usa/u-s-confirms-its-eighth-case-of-coronavirus-pentagon-to-provide-quarantine-housing-idUSKBN1ZV3XV

Let me ask you something, is it ok to make money from the stock market without really knowing the reasons for its movement ? You see, that's the challenge that some traders struggle with. The need to know becomes an obstacle of sort that stops them from taking the action they needed to pull the trigger.

Some experts are saying the coronavirus is perhaps contributing 10% of the cause of the recent sell down and since Dec 19, the indices are long due for a correction. So, nobody really knows what cause the downfall.

For me, the trend line and price action are the most important ingredients that I look at for its movement. The macroeconomics, politics, etc are what keep me entertained and "more knowledgeable" of sort, haha.

Rather than performing analysis paralysis over the causes of the rise or fall, take advantage of the price action and act accordingly.

6 de fev. de 2020

Nota

all selling ceased as the price action has gone back up to the bullish trend line. Though the virus spread seems to be getting worse judging from the number of casualties , the Chinese government is doing all they can to prevent a market meltdown.

And they did this which shot up most stock market today :
cnbc.com/2020/02/06/china-to-halve-tariffs-on-hundreds-of-us-goods.html