Mar-11 Market Update

Will the panic sell-off be somehow postponed? I think we don't need to care about this.

Let's look at the figure attached.

The first scenario is the oval area on the left: We may going a bit further lower and then bounce up.

The second scenario is the oval area in the middle: We may zigzag for 1-2 weeks and then go down again to test 2006 low.

My suggestion for short term will be:

1. Watch YZC KOL, I think the sell-off of China coal stocks is almost done
2. Watch commodities, if signs of stabilization appear (it looks like today...), go long.

Entry point is a pull back after market open with stop loss -1% lower than yesterday's low.