03-02-2014, 04:51 PM
(03-02-2014, 04:06 PM)Greenrookie Wrote: [ -> ](03-02-2014, 11:47 AM)CityFarmer Wrote: [ -> ](03-02-2014, 11:33 AM)DP28 Wrote: [ -> ]I've never seen a market so dead after CNY. Felix, I agree 10% is a good guage. I would prefer a gap down of 50+ points will prove an entry opportunity. Somehow I feel counter specific are dropping faster than the index. Anyone sharing similar sentiment?
Its really been a disappointing start.
I don't bet ONLY on market crash, but a "crash" on individual stock, and it seems opportunities are available.
I have the same view that some quality stocks did drop much faster than the index.
IMO,
Individual stocks crash 10% or more due to the following reasons:
1) insider selling
2) rights or placement
3) poor results
4) macro news affecting outlook, e.g. Tapering impact on reits, property curbs.
When the general sentiments is poor and conincide with one or more of the following, there is always a tendency to overshoot to the downside.
Look at how badly wingtai is hammered relative to other property counters, and how HPH and APPT is affected by 1) plus poor sentiments.
The problem is, if the reason is 3), it might take a long time to recover even if market sentiments improve.
Well said. I am looking more on 4), which Mr Market might overly negative on its near term outlook.