Volatile market today. Today is the 2nd day where some of my china stocks in my watchlist have been dropping again. Cosco, YZJ and celestial. My focus is on celestial, since I was talking about it already. Today, as I predicted, it retracted all the way back to its 200MA ($1.452), and closed at $1.44 which is just below its 200MA. What's the catch here? Presuming that it would close above $1.45, I would have been quite sure of the support level. However, it has closed just below it, which gave me some thinking. Looking at the overall market movement, alot of penny stocks have taken the beating as well, while STI dropped about 2% from its high today. Looking at HSI as well, it really took a hugh drop of 900+ points! But then, it just writes off its increase on Monday.
Other things for information, USD/YEN is at 116.14-116.14 + 0.71, which resume its normal values. While I was deciding whether to go in at the price of $1.44 for celestial, my poems account can't view the live price, so probably this is god's will? :) Nevertheless, tomorrow will be a exciting day to see, and I still believe there's more upside for celestial to break out, and not just celestial, the other china stocks as well! I will need to go back tonight and take a look at the intraday and daily charts to determine the outlook.
Understanding how the market play is very important, because the big players make their money through us, the small fries. If the china stocks were to surge everyday, how can they make their money? As they always say, the rich gets richer, because they know how to manipulate their money. :) I can understand how those retail buyers feel, when they buy in at $1.55 to $1.65, and saw the surge to $1.75 and feel that this will keep on going. But the harsh reality always strikes, 2 days of non stop surging, from $1.21 to $1.75 is a difference of 54 cents! Any person who just join the market will want to jump up this train! (well, this was what I did in the past :) ) So, by thinking in this way, you will know (roughly) how to gauge the market. I always thought that if I knew this is going to happen, why do people still buy in? Reality is all about emotions. :) Don't lose your hard earn money, cos I learn through the hard way as well!
Lastly, I like what this guy said:
" I'm still amazed that even with the speed of information and technology today, human emotion still controls the markets" - Lou Cardinali
Always remember that the market is irrational. :)
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