A note from my friend..........
"Yesterday We experience a global correction with US market dropping 415 pt ( 3.29%). Nowadays it seems that the global market are looking seriously at China market which drop 9%. This is the correction which we are awaiting since last year dec. Going by theory, a major correction should correct 10- 15% which indicate the index support at 2800 to 3000 pt.
If investor wants to cut loss, do wait for a slight push up in the market to cut your loss because the buyers are not coming out at the opening. If you are able to stomache a 10% to 15% drop and you are holding good fundamental stocks, embrace yourself for the drop.
Do take note that there will surely be margin calls starting from today onwards, the constant forced selling on margin calls will push the market lower and lower till the market absorb all these selling and consolidated.
This is a major correction NOT a BEAR market. "
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2 comments:
I believe too that this is just a major correction. In the broader picture, world economics is still fundamentally strong.
Unless something like Sept 11 hit us, market will continue to outperform.
Yup. I totally agree with you.
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