CHINESE NEW YEAR RALLY. WILL THEY HAPPEN ?

Overall the Malaysia share market performance can be considered quiet. Nothing very special happens in this few trading days. We have about two more trading days to go before we celebrate the countdown to The Year of 2009. Here I would like to share my view what would really happen usually when the share market is going to close for their window dressing.

Basically the share was unlikely to perform well during the year end. They tend to move side way or we call it as consolidation move. The volume create is very low because investors tend to enjoy their holiday during Christmas and New Year celebration. No doubt the Chinese New Year is just one month from now, the question surrounding us right now is whether there would be a Chinese New Year rally?

Based on the current performance and the volume created in Bursa Malaysia market, it looks like it was unlikely there would be a rally to emerge but I still can remember when the share market start to trade in the beginning of a new year, the share market started to build up some interest with some of the speculation counters started to show more interest.

At the moment I would rather call an accumulation on this market instead of selling. Technically the share market still didn't show any sign of buying signal but right now they are performing or creating a base or a stronger support at their current level. If there is any selldown occour then it would be great as this would be an opportunity to acumulate at lower price.

In order to build up our confident well and to have a rally to emerge, this market need to have a leader to leads their movement couple with the increase in volume traded. No doubt the world financial market performance are dull including the Dow Jones Industrial Average in these few trading days still there is some potential lies ahead on us.

Now I'm thinking how the Malaysia share market is going to perform if the current situation would remain the same unless there is something very special that the government is going to announce. Something special like an announcement of an abolishment of Windfall tax among the plantation company including the IPP company.