Tuesday, October 14, 2008

Dow Jones Market Rebounded, So What Will Happen Next ?

Wall Street stormed back after its worst week ever and staged the biggest single-day stock rally since the Great Depression on Monday, catapulting the Dow Jones Industrial Average (DJIA) to a +936.42 point gain, its largest point gain ever, largest percent gain since 1933 and finally offering relief from eight consecutive days of stock market carnage. The S&P 500 also posted its largest percent gain in 69-years on Monday, snapping an eight session losing streak in the process.

I didn't expect the DJIA to gain so much. I just expecting it to rebound only. Yesterday during the morning and afternoon session I did brought some shares worth nearly RM 100,000 and this morning I sold off most of the shares but still left some. I sold about 80 % of my yesterday holdings.

It is not easy to make money unless you buy the right counter. Not every counter can make contra money unless you hold it for another few days.

My expectation towards this market at this moment; the index will gradually moving up slowly. If we take a look on my last article about share market posted on Saturday, October 11, 2008 (KL COMPOSITE INDEX WILL REBOUND NEXT WEEK ?) the KL Composite Index will likely to stay in between 925 points to 1,020 points.

I'm also expecting the world market to stabilize at the moment. Still we need to be careful all the time because the global financial meltdown has just started to show their jaws.

Whether the US 700 billion will help the US financial turmoil and whether the injection of funds by the governments in Europe will help their banking system from being collapse, it is still in the earlier stage. The real story about the damages suffer by their financial institutional are still been cover up by their governments.

Still I would prefer to stay out and do nothing about it. Just watch where the next level of the KL Composite Index is and the DJIA is heading to.

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