The Tough Days

We had predicted that the crude oil entering the slumping section, and 115 seems inevitable. Also, we expect the crashing of the euro. Both fit our expectation; however, we got trouble in the stock markets of the united states. It's horrible, but we have to admit it, because the market is always correct.

The rally of the united state is not in our thinking. You might say it's due to the crash of the crude oil, but for we technical analyzers, it's not the case. I have to say that I am really confused with the trend of the united states. I don't think it will continue burst out. Before a clear trend is established, retreating from the united states is a better option.

For taiwan stock market, I don't believe it will rally at present. Someone made wrong action yesterday, so in the early trade today, he has to stop loss and changing his positions. That's why it seems weak in the early trade, while pulled up in the last. However, since it did form a new pattern of rising, we have to follow it. Before 7010 was broken, it will continue going up, the aim is 7230. Don't expect it will rise sharply, it's still a range market.


Suggestion
Resting is a good choice. Buy near the bottom ( 6995 or so ) and sell around the top ( 7180 )and the aim 7230. Don't chase at high.