SET Index : Sell the rebounds but be increasingly careful buying the dips
August 10, 2011 1 Comment
Summer 2011 is looking like a summer of discontent, with much anxiety, tension and resentment in the public mind from China to the USA, and of course Europe too.
What this means is stocks could be out under significant pressure for a while longer – several weeks – with the SET going down below 1000 once again.
Such times mean day trading and very short term trading on the SET and TFEX as opposed to investing (buy & hold) becomes the strategy of choice, which has been the case for 70% of the time since Y2K.
We don’t wait for the entire market to break down before selling because we always have a target for a trade, as has been the point of this blog over the past half year.
If you are heavily long treat any bounce next week as a time to lighten the portfolio, maybe short the SET 50 futures too. Options are also well worth consideration at this juncture in time.
The SET could easily test 1020 or so next week, and then the 1k mark. 980 seems possible to us. All it will take is for the US markets to break a fresh low and off we’ll be going down in style.