The SET below 1000 revisited
June 11, 2011 Leave a comment
Back on May 25th, the last time we published comments on the market, we said it was guaranteed the SET would dip below the 1000 mark, and this was not received well by some. Well, the SET is heading down again and should take out last week’s low of 998, probably to 990-992. If there is follow through selling on the Dow on Monday, then 977-980 will be within range.
However, there is some chance the big US ‘too big to fail’ bunch might have a go at a technical rebound this week, but it will only really mean something if a reversal and daily close or two on the Dow above 12,200 is posted. First it may dip to 11,800 or so.
Keep in mind all is far from well in the world. The European debt crisis has the potential to ignite another financial meltdown – this time starting with European banks and swiftly followed by the US too big to fail crowd who have written tens of billion of dollars worth in CDS’s against Greek debt default (and plenty other countries as well).
The world would be a better place without the top 20 or so global investment banks (Hoonthai refers to them as global market makers) .
Markets are looking scared, Thai stocks can not escape another crisis, and for the next week or two the risk of something bad happening is higher than the local media would let us believe.
Trade with caution and don’t believe everything the analysts’ say.