HSI is going to the moon , maybe ?
Rising tide move all boats , so we can see the much awaited news of China government releasing trillions of money into the housing market and encouraging banks to lend out even more money by cutting the reserve requirement ratio by 50 basis points.
It was euphoric yesterday with HSI rallying more than 4% and all tech shares going up to the moon, much to the delight of many who had hang their heads down for years to look for light at the end of the tunnel.
As usual, some analysts said it is still insufficient while others feel this could be a good catalyst for more promising stimulus to come. The important thing is HSI is now out of the bear market zone (20% from the low in Jan 2024). It went above the yellow line in August recently only to fall back again but this time it looks REAL as we have more than 1 week of strong green candles. I will not be adding at this juncture as this parabolic move is likely to cause the price action to consolidate around 19063 to current price before we see it push above the resistance level at 19735 and heads higher in the month of Oct/November when FED cut rates further.
FOMO, there will be a group of people who wants to scalp the market for short gains and flood the social media with all kinds of news to push the price higher. If you are not prepared to hold the shares for long, then it is not wise to chase the price up.
Wait for pull back , be patient....
It was euphoric yesterday with HSI rallying more than 4% and all tech shares going up to the moon, much to the delight of many who had hang their heads down for years to look for light at the end of the tunnel.
As usual, some analysts said it is still insufficient while others feel this could be a good catalyst for more promising stimulus to come. The important thing is HSI is now out of the bear market zone (20% from the low in Jan 2024). It went above the yellow line in August recently only to fall back again but this time it looks REAL as we have more than 1 week of strong green candles. I will not be adding at this juncture as this parabolic move is likely to cause the price action to consolidate around 19063 to current price before we see it push above the resistance level at 19735 and heads higher in the month of Oct/November when FED cut rates further.
FOMO, there will be a group of people who wants to scalp the market for short gains and flood the social media with all kinds of news to push the price higher. If you are not prepared to hold the shares for long, then it is not wise to chase the price up.
Wait for pull back , be patient....
Nota
I eat my words, do not wait for pull back as this is ferocious bull raging ahead and is just the beginning. Why did I said so? Certain stocks like banks offer fantastic dividends of 7+% and its ultra low PE and 3x book ratio offers a irresistible chance to buy it and any delay or waiting for pullback will cause the dividends to dwindle.... So if you are not comfortable with this fast pace, you may want to wait but the price to buy will be higher and at lower dividends yield . To each his own
Penafian
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