Keep on movin'

The market finished up 26.36 points to close at 3181.92 after a relatively gradual climb from its morning low of 3125.70. The bulls seem to have quickly overcome the bears from today's "tick-like" intra-day movement.

A note on current sentiments in the media, today's front page of the Business Times has an article on "A 'V-shaped' Recovery". Analysts are thinking otherwise that this could be a rebound in a bear market. For general information, the charts that represent "V-shaped" recovery and technical rebound differ in the time scale (and hence the gradient of the swing). Currently, it is hard to tell as the phenomenon is just starting.

Another notable point is that "V-shaped" recoveries that recur end up in range markets. Just go to any good chart provider and look at charts in general. You'll see that bull market upswings are less "V" until the later stages. In the later stages when rebounds look "V", the later finish tends to be higher than the previous peak hence, showing the up-trend.

Outlook in the next few days is rather uncertain even though current trends are indicating further upside. By stance on the markets remain.

Those trying to recoup or cut losses in the previous downswing can look forward to an exit point soon. This may sound foolish. However, from a risk management point of view, you did rather take a small loss and cut your risks considerably than a keep your stakes high in an uncertain market. Your expected return for the moment may be greater by doing the former.