Market View 12 August 2010

Wall Street nose-dived in overnight trade as
"Stocks erased the year's gains in the broadest
selloff in a month-and-a-half on Wednesday as
fears of sustained global economic stagnation
caused investors to flee to safer assets.
All three major indexes posted their worst percentage
drop since July 16 following the Federal Reserve's
bleaker assessment of the economy on Tuesday.
The U.S. central bank said it would take steps to hold
down borrowing costs"
At closing bell, Dow lost 265 points or 2.5%, S&P 500
dived 32 points or 2.8% and Nasdaq down 69 points
or 3 %.

Is this the imminent crash that I had been talking
about since the beginning of the year?
Dow is just a mere 380 points above the psychological
support level 10000 points, and if it continue to
slide down, it can only points to a more serious
crash coming right up.

Our market will definitely open lower and the
pennies and mid-caps may even gap-down today.

But I believe it is a much welcomed scene for many
retailers and traders alike as the stock selection choices
lately have been limited to just a handful of stocks.
With this selldown, hopefully the stocks will retrace
back to a more attractive level, and I believe most will
be more than willing to grab the bargains.

Seriously, I don't know how serious this major correction
will be, if it really materialised, but I will be monitor
the same old stocks for any greens among the reds.

Is it still possible to see greens today? You just never
know what Mr Market is thinking.
I will talk about the issue of 英雄造时势 or 时势造英雄
at another time....

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.
See their comments here:
http://stocklobang.blogspot.com/feeds/comments/default

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

市场生存座右铭: 风林火山