Friday, January 30, 2009

KL Composite Index Still Weak. Consolidation Mood.

Early in the morning the Dow Jones Industrial Average finished 2.70% lower, ending a three-session streak of gains. The DJIA was down -226.44 point to close at 8,149.01 point. As long as the DJIA still stay above the 8,000 point then it still consider alright for the financial market.

The KL Composite Index still trading with low volume recorded this morning. Without the volume back up, it is hard for the share prices to move up. What we need in this market was a market leader and a volume build up. Then only we can consider to trade with market. With this kind of momentum it is hardly for us to make any gains out of it.

No doubt the U.S. House of Representatives has approved an $819 billion stimulus plan recently, it is still early to say that this plan will work at it best. The 44th U.S. President, Barack Obama still needs to do more in order to stimulus their economy or else their financial instruments will face a collapse in near terms.

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