The Asia Pacific markets went southbound again, closing in red with Nikkei closed down 0.40 percent and Shanghai Composite Index ended 5.29 percent lower.
Hang Seng Index broke below 20000, a level not seen since June 2013. The cash market closed at 19888.50 (-565.21), down 2.76 percent. Jan Futures ended 456 points lower, closed at 19943. Today the range for spot month futures contract was traded between 19820-20066 (246).
From the technical point of view, HSI is not looking good. Any bad news will trigger market moves towards the lowest level in 2013, which is 19395. Next support 17857. On the upside, resistance is seen at 20835.
Is this a good time to buy stocks? Depends. It depends on your holding power--financially and mentally. If you have a pile of extra cash which you don't need it, yes you can start collecting quality stocks. Bear in mind, the market sentiments and investors confidence is low at the moment, you'll need time and patience to go through the rough time.
If the portfolio you are holding is full of high dividend and quality stocks, you might experience a wild ride in short term, but long term, we think is fine. If the portfolio is full of speculation stocks, we are afraid you might need to restructure your portfolio at this moment. This is what we think.
No one knows how low the market will go and how long it will last before we see good days. No matter you are a buyer or short seller, market is full of excitement. Bucket your seat belt and happy trading!
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