Multi-Millionaire Oei Hong Leong: Get Out When The Market Rallies!!
Mr Oei Hong Leong, the 29th richest man in Singapore who has the nickname “Golden Finger”, advised retail invetors to GET OUT OF THE STOCK MARKET WHEN IT REBOUNDS!! He felt that the US$700 billion package to bail out banks by buying their toxic mortgage-based debt is “FAR FROM ENOUGH” to restore stability in the financial markets. If u think that the market has bottomed, please thinking seriously again!! THE CAPITULATION IS NOT HERE YET! According to Mr Oei, we are now having the mortgage crisis, next to follow will be the credit card crisis. Trouble have spread from U.S. to Europe, slowly coming to Asia, ultimately will be hitting Singapore. I want to stress again: buying share now does not stack the odds of winning in our favor, we should be doing SHORT-SELLING through the legitimate way of using CFD (Contract For Differences).
Cheers 
Source: Straits Times
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
2 People Have Something To Say Join In The Discussion!Is the Capitulation here? Time to go in for Bargain Hunting? NOT YET!!!!!
Dow Jones suffered a staggering 1874 points or 18.15% decline last week!! It sliced through the support levels of 10156, 9707 and 9369 like a hot knife through butter with total ease!! It should stage a brief rally at around 8300 level with the K-line (a proprietary tool of T3B System to assess the risk level of a stock or market index) at rock bottom level, which indicates an extreme oversold situation. Dow Jones’s next resistance will be 9043 and 9369 levels respectively. If the 8300 support were to be penetrated again, its next support will be at 7415 level, the low attained in 2003!!
NASDAQ ended last week down 297.88 points, a 15.3% tumble!! With its K-line at rock bottom, NASDAQ should find a support at the 1521 level. It’s next resistance will be at 1753 and 1889 levels. However if the 1521 were to be penetrated again, then we can expect NASDAQ to fall further to a possible low of 1109, last seen in October 2002!!
S&P 500 collapsed 18.19% or down 200.1 points last week!! It should rally from the support level of 942, which T3B System’s one-and only K-line indicates extreme oversold condition. The next resistance levels will be 1014 and 1069 respectively. If the 942 level were to be broken again, we may see S&P 500 heading south towards the 775 level, last attained in 2003!!
STI closed at 1948 last week, it is now down 50% from the high of 3906 recorded in October 2007!! A brief rebound is expected at the 1905 level and the bear rally will most probably meet resistance at the 2190 and 2277 marks. If STI were to pierce through the 1905 support level again, we can expect it to tumble to 1702 level or even lower!!
Capitulation or climax selling occurs when traders/investors PANIC SELL till the level that everyone who had to sell has probably sold. This is accompanied by MASSIVE VOLUME, which shows that everyone has given up on stock market and are desperately selling at any price to get out of the market. We may have started to see some sign of capitulation last week, but we have NOT witnessed EXTREME PESSIMISM yet! This means that we still have more room to drop before the REAL bottom arrives. If u think it is very cheap now, I advise u to think again!! What appears cheap now will get even CHEAPER!! We may have reached a bottom, but NOT the bottom yet!! For those of u who still have stocks that u may have bought last time till now, please take this good opportunity to dispose them during this bear rally. For those of us who have capitalised on the crazy market tumble by doing SHORT-SELLING, now is a good time to get out, take a breather and enjoy our harvest! It is good that the market is rebounding a bit so that when the bear rally cannot sustain and start to turn down again, we can go in for the kill one more time!!
Cheers
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
2 People Have Something To Say Join In The Discussion!STRETCH Your Mind To Reach Your GOALS!!!!!
When someone tells u that u can’t do something…….
Don’t worry! Look around…..
Consider all available options……..
Set your GOAL and GO FOR IT!!!!!
GO ALL OUT!! Give 200% of your BEST!!!!!
Begin with the END in mind!!!
STRETCH yourself! NEVER GIVE UP!!!
In the end, u will SUCCEED and prove them wrong!!!!!
Singapore is now in technical recession (which means 2 consecutive quarters of declining GDP) and we can expect tougher times ahead as the real recession hit us next year. BUT don’t despair, let’s all STAY POSTIVE! Nothing is impossible, if your heart is willing!! Now is the best time for us to consolidate our resources, set goals and TAKE MASSIVE ACTIONS to implement them. Later on when the economy recover and the good time is back again, we can ride on the next uptrend to reap the fruits of our hard work and DREAMS!!!!!
Cheers
Can the US$700 Billion Bailout Plan Help?
The US$700 billion bailout plan is just a shot in the arm for the US economy and financial market, it is only providing a temporary cushioning for the plunging confidence. It is NOT going to solve the messy credit situation (which has been snowballing for the last couple of years) overnight! MORE DOWNSIDE is expected for the coming months. If you feel that the stocks are cheap now and are thinking of going in for bargain hunting, think again! They will get even CHEAPER!!!!!
Cheers
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