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Vitaly Larichev wrote:
> Wednesday night I decided to go long (short-term) with SYKE at the
> opening.
> But news in Thursday's morning (HK stock market's fall, negative
> opening in U.S.
> markets) convinced (here the verb is used as a synonym to "chicken
> out" <g>) me
> to stay out all the day long. Out of idle curiosity, after the closing
> I
> checked out how SYKE did that day. What a surprise! After initial drop
> at
> the opening from Wednesday close at 26.375 to 25.75, it wandered
> around 25.5
> a half day, then shot up to 26.875 at closing. It made me wondering
> how many
> stocks handled the crisis as nicely AFTER opening.
All that you say was some one is supporting the stock. This happens all
the time. SO it has nothing todo with market conditions. They want the
guy/gal who looks at the paper to see that his/her stock is up or only
slightly down for the day. When in fact it may of been down 90% of the
day.
> I guess what's all this about is that the public builds up its
> expectations during
> non-trading hours as well, but a reality check (for expectations and,
> which is more
> important, markets' strength) comes only when markets are open, and
> when expectations
> are a significant factor, Close vs. Open comes into play at variance
> with Close vs. Ref(Close,-1).
I like what you are doing here with regards to expectations. Looking at
close vs open & close vs yesterdays close. Although it is suttle, it has
good intuition.
I do not know what to expect for this up & coming week. I haven't been
able to do much TA. One thing I heard about Hong Kong was that the
Friday rally was identical to the our crash of '87. The only reason the
market went up was from corporate stock buy backs. Institutions were
selling. So Sunday night might show some follow through on the upside
but may very well peter out like our rebound after the crash of '87.
There is also some uncertainty on whether Hong Kong can maintain their
current policy of pegging there dollar to US currency.
I had read here recently that these are very serious times. And not to
take these events very lightly.
Harley
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