Tuesday, December 2, 2008

Wall Street's Still Play An Important Role ?

The KL Composite Index tumble -17.71 points to close at 848.43 points. It was a surprised for me when the KL Composite Index open and all the sudden the index fell about -10.00 points during the first hours. Yet the falls didn't mean anything yet or a call to Buy.

It seems that the blue chip has experiencing some selling activities with Sime Darby lead the biggest falls (-0.75 cents to close at RM 5.10 per share). Genting Berhad and Resorts World Berhad were also not spare from yesterday selling activities. This month of December will be an important month to determine whether Chinese New Year rally will emerge or not.

Any continuation of selling will be treat as an opportunity to accumulate the share prices at the lower level. When the selling activities covering the whole market or broad-based, that would be the right timing to monitor whether an opportunity has arise. Yesterday movement will be consider as an usual activities and most the share prices still consider at their comfortable level.

There have been rumours circulating around that something very bad will happen to America, Wall Street or Dow Jones Industrial Average this month. I think we just have to wait whether any of this rumours is true or not. What are the rumours ? It is still early to tell what the exact rumours are ? Hopefully nothing really bad will happen to U.S. financial system.

Remember we still need to be patient and cautious when we want to trade in the share market because the whole movement of our share market performance and the world financial markets would still depend on the performance of DJIA (Wall Street's)

This morning a sharp sell-off in the stock market Monday snapped a five-session winning streak in DJIA as inventors digested a weak manufacturing survey, the possibility that the Federal Reserve may buy longer-term Treasuries, word that the U.S. economy officially entered recession in December 2008 and concerns regarding financials.

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