When/If the market does turnaround, the price rises will be slower and treated with caution. Simply because the most recent memory in everyone's mind is that the market can turn to crap in an instant. That's why things always fall a lot faster than they rise.
I personally sold the remainder of my holdings this morning at 20c. My avg sell is now 24.5c (approx). I will not get in until I think the market has settled, even if that means missing out on an initial 10-20% in MPO.
Have you noticed that in the past 2 weeks of volatility, on the down days, MPO has dropped anywhere from 5-15%, but on the up days, it has generally stayed steady, and not risen (sometimes even fallen).
What does this tell you??
Well, it tells me that there is not much confidence in the markets at the minute, especially in the spec end (bar a few bucking the trend) and even a rally in the US will not do much for MPO, unless that rally is seen to be stabalising and sustainable. Otherwise it's still sell into the rallies until the fall has finished.
There's no right or wrong here, it's all about risk tolerances and expectations. One thing I know is "never try to catch a falling knife." Never forget this rule. Ever.
Cheers
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
