Monday, 7 October 2013

Market Forecast Update: 7 October 2013, Monday, 5.08pm Singapore Time

Market Forecast Update: 7 October 2013, Monday, 5.08pm Singapore Time:

Malaysian Market (Emerging Market) has just ended. It closed green despite DJIA futures -132 points currently.

Singapore Market is near flat, pegging around -2 points to DJIA's -145 points 15 minutes ago.

Smart Money Buy on Fear, Foolish Money Sell on Fear

Straits Times Index is down only 2 points while Dow futures has plunged -145 points. What does it tell you?
STI -2 point is pegged to DJIA -145 points.

Only the noobs, newbies, old aunties and those who cannot think logically or without knowledge or ignorant will be fearful, pull hair, and release their hands. Panic spiders are not suited for the markets.

Dow futures is already -145. Let it drop another 65 to end -200 points during the night, Asia will only get ant's bite like today. However, if Dow recovers from -145 points to end -45 points (still red), recovering 100 points from the open, Asia which has majority markets closed already will end up with a GAP UP open tomorrow, a trap for today's shorts to go eat shit with mouth full of cow dung.

It is the same logic as the Blumont stock. Those who buy only after seeing it rally and rally and rally from  10 cents to beyond $2.00 saw it plunge from multi-dollar status back to 13 cents within just a span of a few days. Not only many months of big profits vanished, but ended up with huge, nasty and distasteful losses.

The currently inherently bullish markets are all the high risk-on markets: Emerging Markets (South-East Asia) and European Peripheral Markets (Italy, Greece, Spain). They do not even care about US directions anymore. Not to say, when these EMs and EP markets are bullish, all other financial markets cannot possibly be bearish at all.

Never see rally and rally to go long, and never see red and red to go short or sell. Don't be an ignorant Auntie or Uncle or Clown. It is all reverse psychology in play.

As per usual Donovan Norfolk Ang's Self-Created Saying: "What you see is not what you get."
Red does not mean bearish and green does not mean bullish.



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