HSI Surprise!!!!

Singapore was having its public holiday on Friday for Hari Raya Haji. While there are still active markets around the world, we get to have a rest on Friday. I think it is really thankful to Islam that Singapore got that rest.



While I did not follow up on the market last Friday, I briefly read about the Dubai issue on Thursday. I never thought that the effect would be so great around the world. If Singapore was active that day, I am very sure that Singapore would be spilling blood all over.



I did check on DJIA on Sunday when I resume my chart reading routine, my thought was that DJIA only dropped by 140+ (although its full fall was over 200). It did not looks to me that the effect is that serious afterall. Of course, all the charts still gave me a bearish sentiments and I was fully out of the market.



After the weekend, as expected (at least one of my scenario), STI gapped down in the morning. That left with very little space for shortist. Eventually it went down by over 30 points by the end of the day.

I read on CNA forum that people were comparing STI with HSI. HSI went up a max of 700 over points while STI fell. From the looks of it, the performance was spectacular compare to STI, which was a mere 30 points drop.


It was until the time I looked at the chart that gave me the surprise on HSI.It actually dropped more than 1,200 points on Friday! This is one of the greatest one day fall I have ever seen. Not only that it went through the floor board, literally speaking.

It is quite unfortunate that I am not able to up-load the picture (again). I will have to up-load it when it is possible again. So for now I have to depend on my skill of descriptive art. What I am saying is that HSI gapped down below the envelop support for the Wedge, and was half way down!

The 700 points retracement today is nothing compared to what it did last Friday. Aparently something in Dubai affected Hong Kong. I assume that a lot of lending from the banks of Hong Kong?

Interesting enough the retracement today was only stopped by the support envelop of the wedge which now turns resistance. I guess HSI is heading down then.

While the indicators on the daily side is at the bottom, its weekly indicators has just started to fall. So if higher time frame governs the lower ones, the daily indicators are likely to stay at the bottom for a while.

So if I am into Hong Kong market, I should be panickign by now. It is high chance (at least to me) that it is never going to see daylight for a while.