Last night decline on Wall Street erased all of last week's gains. The Dow lost 280pts while the S&P500 shed 2.4% or 34pts. 487 of 500 counters on the S&P fell last night, led by the financial stocks such as Lehman Brothers, Citigroup and Bear Stearns Cos after Merrill Lynch & Co 'downgraded' from 'buy' to 'neutral'.
SELL - has been the call for last month or so.. with the exception of last week, where there were opportunities for a short trading buy. This week is no different. On Monday (Aug 20), I mentioned that the rebound could last 2-3weeks max. The 2-weeks period is up. Again, I said that the upside would be limited 2 days ago. Investors who sold on strength would be the one laughing to the bank. At least for the portfolio, there is nothing there but cash!
Both indices are now sitting at the top of a rollercoaster ride and the fall is coming. The fall is going to be quick and swift. KLCI - a fall could see it retest the 1,141 low followed by 1,100 while STI could even test a low of 2,700-2,760. Unload now and stand aside.
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