SET : Looks too good be to be true

As is often the case, the SET’s rebound this week after the very trustable morning doji star formation created late last week has seen gaps all over the place, and is very similar to  the rebound moves on the Index seen on the day chart 3 times since November 2010. This time however volume remains too light in our view, and a spot of profit taking seems very likely later today or early next week. Buying at this stage is too late in our opinion, and indeed taking profit is our call.

2 Responses to SET : Looks too good be to be true

  1. Jumroon Kasemsomporn says:

    Interesting

    • hoonthai says:

      Check the latest posts. Too good to be true… but not too much to expect given the hot money flowing in to ASEAN countries last week. Vols are a tad low, but as is the case on the Dow, S&P 500, DAX and FTSE, markets can and do go up on low volume.
      This global rally is the work of the Fed. Make no mistake, they want to create a ‘wealth effect’ with higher stocks prices, just like they did with housing prices from 2002-2007. Will it end badly.? Of course. Is there any other way?

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