Twitter war between players with blame game on CSE continues
Interesting exchanges about market predictions gone wrong amidst looking for scapegoats to blame are making the rounds on Twitter.
Disgruntled traders are doing the clap back on those who predicted Colombo Stock Exchange (CSE) highs.
A frustrated trader called out a particular high networth trader in a tweet saying, “You have been telling people to buy and hold and buy and buy. Technically ASPI should have bottomed between 7150 – 7200. Fundamentals should have backed it up. Corporate earnings, swap etc. You have been saying market has bottomed for the past few weeks.” “You have said, buy fundamentally good shares and so on, most fundamental shares had really good technical setups,” he went onto say. “(Now) all (have) gone bust. I don’t think most retailers have ‘net worth’ to be averaging down. Actually where is your bottom sir? That’s my question?”
The so called big boys might bank, while thousands of retailers would lose years of hard earned money, he added noting that the CSE has so far not played at all the way any analyst either technical or fundamental has said it would.
This is absolutely true. A counter argument said that the new retailers who came into the market were buying and pushing prices like there is no tomorrow. Also they didn’t have the power to hold and were like bulls in a China shop. “Actually it’s their entire fault. Don’t blame that (particular trader) for pointing out the value.” An answer promptly came, “How did they push the markets like there was no tomorrow (through credit)?” First blame goes to the brokers not the retailers, he said noting that he wasn’t blaming the said trader but was simply asking him where the bottom is since he obviously knows more about what’s going on inside.
“There are over 12,000 new traders in the market doing more than 40, 000 daily trades. Not all of them trade on fundamentals, value or sound judgement. Some of them trade on sentiment,” a stockbroker pointed out.
Certain stockbrokers say almost Rs. 1 billion fresh cash used to come into the market every day and that day traders made as much as 10 per cent a day in the CSE. “They make a bit of easy money, and then invest a bit more and this trend snowballs. It is important to remember that this is a demand/supply situation where supply will become low and share prices will drop,” an economist pointed out.
An analyst agreed noting that investors work in a ‘herd’ mentality which shows their slow comprehension on market mechanics.