These 3 stocks remind us that catching a falling knife does not pay
Remember Asiasons, Blumont and Liongold?
I blogged about them here ‘Technical lessons from biggest Singapore stock market fall in 2013‘. These three very unfortunate stocks that are listed on the Singapore Exchange and involved in commodity investing fell sharply on 04 October 2013 and wiped out S$5.1 billion in one day.
Apart from a news-driven gap up on 21 October 2013, they remain in the doldrums. Excellent reminder that one should never catch a falling knife. Because you can get away a few times, but its always the last that will bust you. When a stock falls like this there has to be a reason even though the real reason might never be clear to the investor or made known on a timely manner. These charts show that price action offers no bullish reversal or sign of recovery at all. And last important reminder: cheap can get even cheaper if price falls to zero.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.
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