Tuesday, August 19, 2008

How Sharp the KL Composite Index KNIFE ?

Yesterday the market indeed close at low and break the recently supporting level of 1,089.47 points (21.07.2008). The market down -10.69 points to close at 1,084.36 points. But if tomorrow the Index can climb up then the whole situation need to be reconsider. But I'm doubt about that.

Although the market volume remain low, there are so many counter posted double digit decline. Its looks attractive but I would prefer it go down some more, may be in a drastic way. If the market go down slowly, I would prefer to stay out.

At the moment it is too early to say that the market has already near to its bottom. Yesterday MRCB and MMC Corporation making new lows. Not only these two counters but some of them are making new lows. How far will they drop ? Where is their bottom ?

Yesterday afternoon before the market open I just mention about catching a falling knife and it appears that the opportunity has just arrive but it is not a right time to take an action now.

A careful watch on how the market will move this few days will determine whether time has arrive. I think this few days we need to glue our balls of eyes on to the screen to watch the whole situation.

"Opportunity do exist but how good you are in catching the right stock will determine your wealth."

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