I was dead wrong and overly optimistic in my previous post. 2 days have passed and the market has sunk even deeper. As i write, Dow Jones is down 400 points, so i expect STI to gap down tomorrow. 2821 is the next support to watch, and a closing below that hints at yet another low to come. The market is increasingly volatile with emotions raging high, so traders who insist on trading during this period should trade smaller positions with much wider stops. A short term rebound will definitely come in this oversold condition, but this trade will not be an easy one.

On a side note, a lot of experts are recommending defensive stocks as a safe haven amidst the chaos. I do not agree, simply because Singapore's economy is unlikely to escape unscathed from the ring of fire spreading across the West. This is the time when ......