START YOUR ENGINE. Accumulate for CNY Rally ?

Yesterday performance by most of the individual counters started to show sign of moving forward. Even without the help from overseas market, the KL Composite Index managed to climb +18.00 points and close high at 880.50 points. Most of the share prices are advancing accordingly and some of them even show more strength to close with a double digit gains. It was a surprised move by KL Composite Index.

Yesterday without any doubt I have started to accumulate some of these shares. KNM Berhad, Genting Berhad, HeveaBoard Berhad and Kinsteel Berhad.

From the charts point of view, most the share prices movement has already started to show sign of accumulating. Not only that, with these kinds of movement yesterday all the major indicator has started to point its movement to the sky.

I didn't expect it to move very fast but the indicator suggest that the market is building up its base to move further. This might be the starting point or the entry point for the preparation of the coming Chinese New Year rally.

The game has just started. Try not to be too aggressive in accumulating some of shares because next week we will be celebrating the Christmas and I'm expecting the market will move slowly and steady. Eventually it will move higher and higher towards the Chinese New Year day.

Why I have to point out that it is time to accumulate ? During the month of October 2008 our Malaysian equities market including the overseas share market have experiencing a huge sell down before stabilizing for more than a month. Starting from the second week of November until now, the KL Composite Index have already started to build its base for almost 6 weeks.

A check on the charts again shows that many of the share prices have already bottom out and their share prices have already started to move higher.

This is just my personal point of view and it cannot be treat as a buy or a sell in Bursa Malaysia equities. I think the BULL is coming BACK. In order to have a smooth sailing, the performance of Dow Jones Industrial Average still play a very important element in order to support the KL Composite Index movements.