Today's Overview

Islandwide profit-taking and everyone panic, instilling fear.

Straits Times Index dropped 39.21 points to 3754.62, after hitting an intraday record high of 3851.88, while Hang Seng Index was shot down at 719.81 points to 27,479.94.

Chances are that hedge funds are at work, taking profits on the recent big gains on China stocks. China stocks were the big losers, as they succumbed to a second day of profit-taking, after racking up spectacular gains 3 days ago. I did a simple check on most China stocks and realised that the selldown began as early as 3.30pm. Retail investors who contra definitely included. For those who short-sell or naked short today, I will be expecting buy-ups next week.

Now is the golden opportunity for those investors who missed out in the earlier bull run to enter the market following such dips. For those who have financial difficulties to join the healthy correction, I would suggest to start investing little by little. Even if profits of a few dollars in each trade is still considered as profits!

And of course, those who join in the bull run will be rewarded eventually. On hindsight, please be extra careful of the volatile market, place your stop-loss orders, exit points and must always be prepared to cut loss (Success to investing), and exercise your own responsibilities for your trades as it is your own decision and money.

Hope that helps!