8.49am The FLKI opened gap higher in line with DJIA closed of low last night. The reason of DJIA closed off low was because many investors think that the market is oversold and it is a good time to pick up value stocks. Nikkei was up 100+ points this morning that helped FKLI to open higher.
Has the worse been over?
My view of an impending downtrend is still intact. However, the current rebound could be a technical correction and my strategy is still to sell FLKI on high. I would not want to take any long position at this moment and would wait for good opportunity to short.
For clues when to short, look at the intraday volume, regional market performance and news.
11.25pm The FLKI performed to my expectation. I made a short too early at 1254.5. After my short, the FLKI went up to as high as 1260. However toward the closing moment, it plummeted down from 1257 to 1252. Instead of closing my short position at 1251, I chose to buy on close which settled at 1253. I made lesser at 1.50 points which is still enough for a little profit after netting off the commission.
