Maniacal panic, followed by equally maniacal exuberance...all in less than a week!

Just look at the chart above.

Isn't it just a picture of pure insanity driven by fear and greed?

The Hang Seng Index plunges 20% in the space of one-and-a-half weeks and then regains over 85% of that gain in four days!


Sure, many stock charts look like they've turned the corner. However, the recent catapulting indices look set to retrace some of the ridiculous overdone gains of the past four days.

I have sold off all the stocks I bought near the bottom on Friday, but am replacing them with cheaper stocks that have lagged the rebound.

Blue-chips in Singapore ended appreciably below their day's highs and the STI, which at one point was up 113 points or so, ended up 'only' 49, thus retracing over 60 points of that initial exuberant spurt.

I dipped my fingers into STI put warrants when the index was above 100 points up, but was disappointed to see that these warrants only rose 4.3% from where I bought them. I also managed to get some Hang Seng put warrants at the same time (before the market opened at 10am) and managed to get some at the day's low and one tick above that.

They had risen 10.3% by the close of trade.