After the market was selling off for 8 sessions, finally it rebounded technically today. I use the word “technically” because the market is oversold and naturally there must be a rebound. I received a few calls today; Vincent, can I buy now? My answer still “No”. Ask yourself before you consider to buy at the bear market; can the rebound last longer? Can the rebound break through the major resistances? Is the market going to reverse (by looking at the chart)? Is the sentiment turn bullish, if yes, what are the factors to make the market turn bullish? Do I have a cut loss plan and so on? At this moment, there is a lot of negative news surrounding us. I advice you to sit sideline first and we don’t mind to wait for the market to turn around and buy at a higher price. If you still have stocks on hand, any rebound is an opportunity to cash out.
Don't try to catch a falling knife in the falling market. In the last few sessions, our market was falling like a knife. A fundamentally cheap buy can still go cheaper due to deteriorating market sentiment. We advise against buying downwards and we prefer to see the market to turn around (hitting a bottom) and start to show some confidence from buyers. So, please visit this blog regularly to check the market status.
