KL Composite Index Moving Side Way........

Basically today I did try to learn something new about studying the trend or the movement of the share prices after recent sharp falls. I did notice after the recent sharp falls the market show some sign of strength particularly for those recently sharp drops counters even though Dow Jones Industrial Average close sharply down on Friday market (11.07.2008).

With the instability political situation in our country, the share market today show some interesting movement after two hours of trade. A bit up but overall performance can be consider either mixed or either bad. The KL Composite Index close down -6.39 points at 1,144.00 points.

Last time I do not care that much because I never record it down but now the situation is a bit different. I’m trying to be a blogger. I need to learn and study the whole market movement before giving a comment. Some people might say that I’m very lucky this time (making some returns during recently sharp falls) but for me whenever I’m involve in the share market, particularly during a sharp falls, I always learn that whenever there is a sharp falls with the RSI (relative strength index) oversold couple with some very bad news, the share prices would eventually try to adjust by digesting the overall selling in the market and moved up.

Since last week some of the counter already out of energy to climb up to a higher level, but some of these good counter are still moving forwards. Today Resorts World climbing to a new fresh high at RM 2.70 per share with YTL Power at RM 1.83 per share and Gamuda at RM 2.61 per share.

Watch out for Datuk Seri Anwar Ibrahim and his Pakatan Rakyat. Some rumour stated that there will be some major development coming in this August or September.

Also watch out for financial site in US. The first Bank to collapse in US. IndyMac Bank FSB, the largest savings-and-loan in Los Angeles and the 10th-largest in the U.S., was taken over on July 11 by the Federal Deposit Insurance Corp. It had assets of $32 billion and $19.6 billion in deposits at the end of March. The bank is a subsidiary of IndyMac Bancorp Inc. The collapse is expected to cost the FDIC between $4 billion and $8 billion dollars. This does not come as much of a shock, as the 99% plummet in the bank's stock price indicated that failure was a strong possibility. However, there are fears that other regional banks face collapse.

Wahhhh .... there is a chances that more financial institution are facing the same problem in other reginal banks. Is this a TIME BOMB ??? " Still remember Black Monday, Oct 19, 1987 ??? "