260808

Rebound catalyst spotted, China S share has fallen sharpen over the past few months despite olympic being held successfully. The mentality of people had been thinking China will not let its exchange fall sharply thus when olympic started, chinese government didnt offered up any fiscal and monetary policy to boost up the economy.

Now recently report by JP morgan mentioned Chinese gov may provide billions of stimulus boost to the economy, but yet nothing had been done, SSE rise for 1 day and drop sharply the next. As days goes by the news of stimulus boost seems to be true, but speculation will not be encourage, shall wait till the rumour proves true and have a bear rally for badly beaten s shares.

STI support at 2680, rebound is expected but will need a right catalyst for a bear rally market. If STI closes below 2660 rebound invalid. Key economy indication in US had worsen, buffet predicted the market to be much worst of in next 5 months.

There will be 3 counters that i will be entering the market if stimulus boost proves to be true. Short term trade,

China Hongx
COSCO
Ferrochina