'It's okay - we've now decoupled from Nasdaq.'
These soothing words were offered by one pundit yesterday on the outlook for Hong Kong's stock market. Considering the Hang Seng Index's two-day, 701.32-point dive seemed to have a least a little in common with the bloodshed on Wall Street, they are offered here as a caveat emptor.
Investors want advice on the issue of 'the bottom'. If it is nearby, one should be buying stocks. If not, perhaps shorting. Below is a quick guide on how the pundits are approaching the main themes.
The technical view:
Salomon Smith Barney chartist Ron Daino, based in New York, offered a none-too-kind outlook on the index's direction. His main concern was a break through the 13,700-point level - a feat accomplished in the first second of trade yesterday as the marked opened down 460.16 points at 13,316.56. The index closed the day firmer, at 13,493.03. Once having pierced the 13,700 level, the projected downsides on a technical view are a bearish 11,400 to 9,400 points. The market has not been below 10,000 since 1998.
Mr Daino offered kinder intermediate-term support levels of 12,000-12,500.
