Good Morning Readers,
Undeniable, on last Thursday, we received a good number of emails….and their content are…
“You guys sucks! Your calls are wrong!!”
“Kelvin, your calls are WAY OFF!!”
“You are horribly wrong!”
“I am going to go Long in the market tomorrow to prove you guys are wrong!”
“ Market have broke above the MA, how can the market fall?”
“Kelvin, kindly review your calls.. I think you got it terribly wrong this time..”
“Kelvin, I have always follow your calls and normally do profit but this time, also because of you..
I think I missed too much…don’t you see the European Summit is a success?”
On Friday morning, I contacted 5 different brokers from different companies and asked them if
Retail traders are returning into the market?
YES was the answer from all 5 of them.
STI rallied to 2905, up 50pts in the market while I noticed most shares especially the 2nd and 3rd liners
are trading near their Day Low levels before closing AND the volume was obviously missing.
Based on our V3Go ROC Pattern, the Negative ROC is a clear signal for all.
I contacted my trading friends….
“The Time is RIPE! Another MF Global similar issue will destroy this momentum…”
. . . . . . .
Over the weekend, more news came from MF Global and its decision to file for bankruptcy. With only a Value of US$198million, they are holding 6.3bln worth of the European sovereignty debt.
Read this article for more details…. http://www.bloomberg.com/news/2011-10-30/corzine-s-mf-global-faces-pivotal-days-as-firm-considers-sale-bankruptcy.html
. . . . . . .
3 months ago, MF Global just produced results that out-beat the analysts targets.
Isn’t this the same story like what we are seeing from the EU Summit aftermath?
Good news are reported but the not so good news will eventually hit the market after the big boys get what they want?
I am looking at more selling to come into the market from today onwards as it is very clear that we are going to see
a few series of selling waves returning to the market very soon as I am confident to say that, MF Global is not only
the company who have big amounts bets on the European debt issues.
I am believer that the incredible 1 week upside in the stock market was nothing but orchestrated and political motivated
without fundamentals during the EU Summit. People are buying things without factual support or reason, thus sooner or
later we are going to see the rational reaction by the Wise…and I appeal our readers to also take the WISE stand too.
I am still keeping my stance that Dow may hit 13,500 by end of Dec 2011 but the EU Crisis and the meeting have
alter the cycle flow and may bring my prediction back by 1-2months.
If you have monitored carefully on the US data recently, other than the Unemployment Data, the rest of the figures are progressing positively nicely. Even Consumer Sentiment Index is edging nicely.
Therefore I sincerely hope that the market will return to normality and rationality by doing a HEALTHY correctional pullback.
Once this pull back is done, I am very sure the “genuine funds” will bring liquidities into the equities and currency market.
Watch commodities… this market will RISE to new historic levels again!
Disclaimer applied.
Best regards,
Kelvin Han
V3Go Chief Trainer