HSI down 250 points, KLCI is flat ... many more retracing lower and some started to show weakness too ... how low could this correction go? Wait ... correction or reversal? You have to decide on that.

Learning Corner : Capitulation

http://www.thestockbandit.com/capitulation/

I have shared with my group this term last week ... and today, I saw it being posted in one of the blog. It will be important for those in markets to understand such a term ... and stocks do NOT move up or down in a straight-line. The fluctuation is what needed for traders.

Today, I could find SO many oversold stocks, some forming such a nice parabolic-diving ... yes, the waterfalls. One could speculative on EPF sellings or perhaps the coming general-election. These are affecting th sentiments of the current markets. Majority(wow ... more than  70% taken the poll) believe KLCI will break 1600 ... a matter of time!! Yeah, I do believe it will go beyond 1600 ... to 1620 region, but who ar we to predict? Based on? Technical-analysis .. or earnings? You decide on that too. Speculate all you want ... it wont change the market outlook much.

What is more important at this point of time ... is the FEAR factor intensified? I will like to see more retailers selling ... that is 'capitulation'. Many given up ... depressed(I got sms/e-mail telling m MAC is a very BAD month for him/her) ... think of getting out of market, swearing ... cursing and blaming those stock-analysts, brokers ... more tensed situation arises ... yes, then it is about time to buy!!

TEH