SET Index : Plenty more downside to come
October 2, 2011 Leave a comment
We warned well in advance that the market was going to 880 or so – when it was still well above 1100. The trouble now is 880 will not hold, nor will last week’s low of 867. Indeed 780-800 is confirmed now, and anything less than a huge QE 3 move by the Fed will make it all but certain the Thai markets falls another 10-15% over coming weeks.
There is some support at 856-860 and it is this range give or take a few points where we will be looking for a rebound over the next few days. Risk is high, sentiment badly damaged, so it pays to be a tad careful and to wait for extreme bearishness to unfold before buying in for the rebound. As defensive plays for the bounce we are interested in the likes of LPN, SPALI, ADVANC, DTAC and a few others.