Market close on 19 Oct

In the WestComb morning note, it is cited that concerns over US credit markets, overheating China Market and record high crude oil prices might affect STI. As STI is at record high level, I think regardless of trader or investor should be careful.

To Trader, volatility seems good. It enable them to profit/loss during the price swing.

To fundamental investor, it is a good opportunity to pick up good stock that you wants to buy. I suggest to watch the STI level to decide whether the enter the market. If a sudden crash materialised, it is a good opportunity to build up some position in good stocks. Again, always leave some bullet, you never know how low it could go. Focus on valuation, I would suggest.

China play seems to pause for a while. Until the real arrival of China fund, I think the price would trap in the range. The biggest unknown is if China market is to correct 20%, would the S-chip move in same magnitude?