Out of touch, out of fear

Oh boy. I was disconnected from the Internet when all these things happened. Why such volatility? Well, if you have traded US options, you will know that around expiration week, things can get really wild. Sept 19 was the expiration date for the Sept options. Things really got wild. Didn't really able to profit anything. Anyway, the charts are still down.

Malaysia	Longterm	Midterm	Shorterm
KLCI	Down	Down	Down
Finance	Down	Down	Down
Construction	Down	Down	Down
Plantation	Down	Down	Down
Property	Down	Down	Down
Mesdaq	Down	Down	Down
2nd Board	Down	Down	Down

If you know candlestick analysis, then you can see a very long shadow for the KLCI chart. This indicates an extreme condition and may signal market reversal. Lets wait and see what happens next week.

World	Longterm	Midterm	Shorterm
S&P500	Down	Down	Down
DJI	Down	Down	Down
NasdaqComp	Down	Down	Down
Nikkei 225	Down	Down	Down
Kospi	Down	Down	Down (-)
SSECI	Down	Down	Down
HSI	Down	Down	Down
TWII	Down	Down	Down
STI	Down	Down	Down
SENSEX	Down	Down	Down
FTSE	Down	Down	Down
DAX	Down	Down	Down

If you do momentum analysis, you can detect some bullish divergence in the chart. This indicates that the sell down is getting weaker.

I think that if a bull is to emerge from this, it still requires many months to establish a base. My strategy is to let the contratrians do the work of creating that base first. If they are successful, then of course I'll join them. If they fail, then I'll just watch what a fool they are.