Dow continue to stay below 10,000… are you shorting today? I suggest NOT.
Posted by admin in Futures Pick, Market Analysis, Stock PickGood Morning,
When I saw the Dow closing price this morning, I already expect to hear and see the same thing that most likely will repeat… and true enough, by 8.30am, once I turned on my HP and computer… the usual has returned…
” Kel, can we short? I have missed shorting the market for the last 2-3days… broker advised me to short but I didn’t. I also think the market is crashing down. Any good counters to short today?”
” Kel, what is the best way to short? Use CFD or naked short? I heard my friend making very good money shorting the market recently. Why you are not shorting?”
” Kel, Roubini says that the US stock market is going to crash, what’s your take on it?”
Find these familiar?? If you are an avid fan of my blog, you will know that this is not the first time I shared on this top, especially after a triple digit selldown by the Dow.
Because I am going to be busy later in the morning, I am going to cut short to the point. I’m 90% sure that IF you are to SHORT SELL this morning then I am pretty sure that most of you MAY NOT be able to cover in profit by the end of the day. This is what I THINK and its only 8.35am as I’m writing.
I expect the STI to gap down by 30-40points at most, so the psychology level should be around 2600 level. Based on my V3Go System, the first support will be around 2583 after breaking 2681 yesterday. The Magical Number for today is around 2646. If the market do recover back to this number and can close above it, I am pretty certain that there will be a technical rebound for the next 2-3days. But of course, if I am wrong, then do take note of the support at 2583. If it doesn’t hold. 2569 will be next then follow by2544 and last at 2522.
For HK Futures trader, do watch out for around 21600 level. If the market can recover above it, I suggest that you stop shorting. The first support for the HK Future will be at 21415 for today. If the market test this level but yet cannot go below by closing, short sellers are encouraged to cover back.
Personally, I believed the Asia markets have already sold ahead of the Dow yesterday, therefore a significant gap down will be made by the market makers and if you are to join in to short sell the market… it will give them a great chance to cover back their shorts while you (volunteering) sell. Every transaction is a BUYER and a SELLER. So there is no such things as MORE Buyers or MORE Sellers. I have given you my advice for today but of course, I may be totally wrong too. So my last advice is,
” Never short a counter that is trading above Opening Price and if the General market sentiment is expected to be bad like today BUT YET the stock is trading above OP, one should be wary on your short position. If the stock/market actually recover then you better cover fast!”
Local Stocks in Mind; DBS, Kepland, Capland, SGX, OCBC
Have a great trading day ahead!
Disclaimer applied as usual
Kelvin Han
Originator of V3Go Mentoring Program
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