Whiplash! Hands up anyone who were pleasantly surprised to see our STI up today? Especially after the -3% mauling for all 3 US major indices last night... Not easy right?
Usually after a 3+% decline in the US, there will be sharply higher US futures the next day as speculators try to bottom fish.
If SGX had stayed open longer, STI will probably be flat or even -ve, seeing as US futures are now dropping. The europeans are uncertain on the containment & how bad it's gonna impact the economy ... and these concerns are re-spilling over into early-riser US speculators' mindshare LOL.
It has affected Indian stocks as they close only at around 6pm ... was +ve most of the day until they saw US futures tumbling! LOL.
I was waiting for crypto to rise along with gold (they finally showed a positive correlation with gold in Jan this year). Turned out otherwise.
Meanwhile, that crypto guy cornered the crypto insurance market and gained 1144% returns over the past 24 hours. Of course! People rush into crypto insurance after getting a scare from the earlier bank run. lol
Usually after a 3+% decline in the US, there will be sharply higher US futures the next day as speculators try to bottom fish.
ReplyDeleteIf SGX had stayed open longer, STI will probably be flat or even -ve, seeing as US futures are now dropping. The europeans are uncertain on the containment & how bad it's gonna impact the economy ... and these concerns are re-spilling over into early-riser US speculators' mindshare LOL.
It has affected Indian stocks as they close only at around 6pm ... was +ve most of the day until they saw US futures tumbling! LOL.
Spur,
DeleteI shorted the Simsci yesterday.
Woke up to see my position made money and seeing the -3% decline in the US, I thought STI would extend and gap down this morning.
And guess what? 10 minutes into the market open I got stopped-out!?
LOL!
I didn't expect the Simsci will reverse so fast and pierce through yesterday's high to hit my stop-loss!?
Then at the closing, Simsci went back down to my entry price yesterday, after seeing the reds in Europe.
Oh well...
Its the market way of telling me make money for the past 2 weeks can oredi.
Don't push my luck!
Hi SMOL,
ReplyDeleteI was waiting for crypto to rise along with gold (they finally showed a positive correlation with gold in Jan this year). Turned out otherwise.
Meanwhile, that crypto guy cornered the crypto insurance market and gained 1144% returns over the past 24 hours. Of course! People rush into crypto insurance after getting a scare from the earlier bank run. lol
Unintelligent Nerd,
DeleteTell me about it!
Last Wednesday, my Dollar/Yen hedge broke correlation as a riskoff currency pair :(
There's a first time for everything. Glad I experienced it and got it out of my system.
Didn't lose money as its a profit stop. But still...
LOL!
As much as traders like volatility, having to experience whiplashes are no fun. :(
ReplyDeleteRainbowgirl,
DeleteIt goes with the territory.
No volatility; no opportunity.
That's why we need to understand ourselves to know when to jump in, when to stand on the sidelines, and when to run away!
One day up, one day down volatilty I don't do well; to intraday traders, they will be celebrating!
That's why I ended up more as a position/trend trader ;)
I prefer to hold positions for weeks or months instead of days.
So did you short the Simsci again today?
ReplyDeleteYesterday the market must have 吃错药 lol.
Rainbowgirl,
DeleteIts a test for traders to be stopped-out of a perfectly good position, to only re-enter the SAME trade at a WORSE OFF entry price.
Yes. I did short the Simsci this morning.
Rules are rules.
When its time to squeese the trigger, must do it.
I rather take a small loss than to lose the ability to squeese the trigger like most "say say only" retail traders.
You know, those NATO traders that say at this price or STI level they will buy, but when it occurs, they sit there 2nd guessing themselves ;)
No, the market did not 吃错药.
Those traders who longed yesterday were buy the dippers betting against those who shorted.
They won during the Asian session but lost big time during the US session.
I lost. Period. (I'm one of those weak shorts they took advantage off)
Today is a new trading day!
P.S. Zen training helps. I don't dwell on the past or future. If right here right now makes sense to strike, I strike!
Crash got sound.
Either I make money or I lose. Its not complicated ;)
Hi SMOL,
DeleteNow the Asia market's leading the US market! Look at what happened to the US market today.
Maybe tomorrow we will see STI up again. Like playing see-saw. Lol.
This is the kind of market that would shake out whoever with no enough convictions on their short / long positions.
If I don't know where to put my stop loss, I think I'd better stay out. :P
Rainbowgirl,
DeleteCovered my short for the tinest of profit.
US all green, I'll join you on the sidelines :)
Just like that, I've turned into an intraday trader...
LOL!
Forex markets seems to have become less peaceful in recent weeks. All the best!
ReplyDeletehyom,
DeleteYup. Its a lot interesting now.
A lot of correlations during "normal" times are breaking down...
Its not a one way street kind of "risk-on; risk off" bets anymore ;)
temperament,
ReplyDeleteThat's the market action between bulls and bears.
No one is bigger than the market.
Like today, our STI broke below 3100 (bearish) but rallied back to close above 3100 in sympathy with the Hang Seng that surged into the green?
Why? Who knew?
Those buy-the-dip buyers must be sweating bullets now that all 3 US indices are -2% down... Still no bounce?
Tell you a funny thing. Even if I had not closed my Simsci short last night, I would still be profit-stopped this afternoon.
Its not meant to be.
Sometimes BOTH bulls and bears lose money when markets go up and down confusing everyone....
LOL!
temperament,
ReplyDeleteBrokers and stock exchanges win no matter bull or bear :)
That's why its not a zero sum game; its negative sum!
They'll eat grass if everyone buy and hold forever and ever!
LOL!