STRAITS TIMES INDEX
Market is down again today and there are millions of people trying to figure out why. Some will tell you they know why and give you a plausible rationale.
Hong Kong shares fell 1.67 per cent with nervous investors exiting Chinese banks and property stocks on a double whammy of steep losses on Wall Street and fears of monetary tightening in China. Threats of tighter monetary policy in China and increased bank regulation combined with a sell-the-news mentality to drop the stock market for its worst single-session percentage loss in nearly 12 weeks.
President Obama stirred concern for financials with the announcement that plans are being put together to ensure that no bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit. Further, the proposal will place broader limits on the excessive growth of the market share of liabilities at the largest financial firms. Though details of any such plan will change as it moves through the legislative process, the idea behind such a plan is a negative for big financial institutions.
Look at STI chart above, trendline has broken yesterday and today’s candle has drop below 50MA. I am looking for correction 15-20% in the market.
nice one collin,today 100MA has been broken, good analysis!~