SET Index : Falling as forecast. Gap closure on Friday.
February 24, 2011 Leave a comment
On Wednesday we wrote “The SET’s first support zone at 982-983 really shouldn’t hold in our view, with 976-978 seen as a slightly stronger VST cushion. However the market can come off quite bit further – all it needs is one ay of heavy foreign selling and it will come off and close the day chart gap created last week from 957 down to 951.”
No need to add too much to the above given the poor close at 977. The worry is the Libyan issue will take a while yet to run its course, with the fear factor likely to keep markets under pressure for a while yet, and all the more so if the reported demonstrations planned for Saudi take place on March 11th. Oh, and China this weekend!
It must be said the local prop desks and some of the big hitters really did a splendid job of trapping the silly money this time around. They kept their nerve, ramped , supported it, rotated right and left, but they managed it all the same. Why do people never learn? The Thai stock market is a great place to learn the tricks and traits of market manipulators, and what was dealt out this week was a lesson worthy of a replay if it passed you by without you realizing you were being outthought by the clever money. Again.