Bearish on HSI

Bargain hunting was in the mood in yesterday's trading after we saw the HSI sliding nearly 2% the day before. The HSI regain its footing, recouping some balance as we see some upward revision of some 141.87 points.
We are still bearish on this index judging from our views that the HSI may very well have already found its summit after hitting a 2 year high. Here are a few points that we would like to share.

• Overbullish sentiment on further gains due to the belief that the Fed will stop its rates hike
• Falling volume for the past weeks, and we may not see further buying momentum driving levels up
• Market fears pertaining to advances on oil price over Iran's disputed nuclear programs and concerns over hurricanes that could strike Gulf of Mexico production and refining facilities

Nevertheless, if conditions turn out to be adverse and infavourable to our present outlook, we may take loss at 20% and may repurchase the warrants at a supposedly much lower price after the HSI tops the 2 year major trend channel. Do not hope against hope when something goes in the reverse direction, you may find yourself falling into a deeper hole.
Signing off. All the best!

A Young Trader's Story