Market View 1 July 2010

It is another day of late sell-off in Wall Street as
"U.S. stocks staggered to the end of a dismal second
quarter on Wednesday in another low volume session
as investors found little reason to take on risk after
conflicting economic data". Investor "sold underperforming
stocks in the worst quarter since the market meltdown
triggered by the collapse of Lehman Brothers."
Dow lost 96 points, S&P 500 dropped 10 points and
Nasdaq fell 26 points.

It is a dismal scene in the US but over here, it seems that
the sun is still shinning brightly. STI recovered from as low
as -60 points to close up 5 points, which is a 65 points
reversal. Will it last? My answer is almost a definite NO.
I believe that we will see a major selldown correction pretty
soon and I am glad to have such scale that most stocks will
be back to bargain-hunting level.

Many winner stocks reversed from early losses and closed
at the high or near-high, and I believe that some readers
should have benefited from the rebound play that I mentioned yesterday,
but the music got to stop somehow, and now the issue is who
will be the last one standing and holding the baby?

You can say that I am quite bearish about the 2nd half of the year
as I have already been so since the beginning of the year and
have highlighted numerous time in my blog months ago.
If I am not wrong, the selldown correction will be swift and
deadly, and without any indication from Mr Market (as always),
but don't worry, you will have a few months to collect the bargains
as the market will likely bottom in October or November.
Take note that the above are purely my personal view and it
may or may not materialise, but I am pretty sure we will see a
reasonably scale selldown, and I am waiting eagerly for it to happen
with both hands.  :-)

Today is the 1st trading day of the Q3, and we will have a
weak opening, but sticking with the greens and having a
ready cut-loss and trailing stop will be essential.

Enter any position with a Cut-loss level & Trailing Stop,
and Please practice strict (Risk)Money-management.
If you don't like what you see in the market,
simply don't trade.

If you have Skype, and would like to chat with me about
stocks and all others, you can ring me at my
email address: stocklobang@yahoo.com
I have currently a couple of members skyping with me
everyday,and they are having good trading results.

As usual,
Stay Alert but be Aggressive too.
Audentes Fortuna Juvat !!

市场生存座右铭: 风林火山