Thursday, September 18, 2008

KL Composite Index has Bottom Out ? Maybe ....

Sorry to all my readers at Bursa KLSE Blog and News ( Lately I was quite busy preparing some article about MP Teresa Kok.

Ok, let's take a look on how our KL Composite Index doing today. Today our market open sharply lower at 993.21 points. Down -9.78 points from yesterday closed of 1,002.99 points. At one time the index was down -39.70 points at 963.23 before close down -11.33 points at 991.66 points.

Recently in my article last week on Thursday, September 11, 2008 Opportunity. Cheap Sale... I did mention that when the time was right and if I have this instinct and feeling to enter to the market, I will keep in touch with you all.

Yesterday, I brought a few lots of Kinstell because this counter looks cheap but during that time I can't say that the market has bottom out. It is just that I feel this market need to go down further. I would prefer if the KL Composite Index fell in between 950 points to 980 points. Indeed it went down to that range.

Previously I did mention on my article dated Tuesday, September 9, 2008 (KL Composite Set To Heading South Further ?) I would prefer to stay out unless there is a significant move like what we use to call a "Collapse" or "Tumble" or "Panic Selling" or "Tsunami Selling" like it happen once before.

My advice during that time was to start monitor these two weeks movement because I had a feeling somehow there will be something to rock our KL Composite Index. It might be a "POLITICAL TSUNAMI" or something else.

But it is not Political Tsunami but the US Financial market melt down. AIG.

Today I never thought that the KL Composite Index will have a very big reaction towards the global market and at one time down nearly 40 points. During that time, I started to accumulate some of these share because something telling me that the market has bottom out (temporary).

When the market was down 30 to 40 points, I started to accumulate some plantation counters, steel counters and some recently sharp falls counter. (i.e Kinsteel, Perwaja)

But bear in mind, I'm just targeting for technical rebounds. I hope that tomorrow the market will go up. The profit margin will not be that much because our markets lacks of volume to support.

This is a technique on "How to catch a Falling Knife".

I don't know whether I'm using the right technique ? Maybe I might be wrong at all. Again I would like to remind that, this is just my opinion and cannot be consider as an indicator to buy. I'm just an ordinary person giving out my own points of views.


alexlee said...

It is indeed our market looks very attractive for most of counters at these moment but technically it is still in free fall zone!! Still yet to receive buying signal for our market. It is most probably will bottom out in these round of sell off. I see a limited downside for our market.
Happy investing..

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