Market Commentary

The market fell on Friday after a strong rally the day before. Apparently, the barrage of negative news had crimped the bullish momentum. More negative news had been released on Monday in Asia. The rally will likely fail to have any follow-through anytime soon. It will really depend on the market performance when it opens for trading later.

Continue to monitor the support line. This is a critical point. If this is breached, it will be a sign for bearish momentum for the rest of the week. If you have a long position because of Thursday’s rally, I suggest the you cut your losses and go short immediately. This may be a chance to recover. If you have not taken any position, wait for the breakout of the support line, too. Short it when it occurs.

The market is very turbulent. It is hard to maintain any view at any time. One thing can be certain. Continue to short regardless of the market condition can be a valid strategy to rely on.

Good luck!

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