Thursday, January 15, 2009

KL Composite Index Touches Its Critical Points.

A check on the KL Composite Index yesterday suggested that index is nearing the critical points. This time the Parabolic SAR reading is at 910 points. With yesterday DJIA closing down the KL Composite Index has breach its momentum tuning. It will either move into a consolidation movement or going down further. A rotational play might occur with most of the speculative counters still have some players inside.

Yesterday evening market was lovely with the UEMLand leads the third liners to move higher a bit. MRCB also take this opportunity to move higher. Although its look very tempting when most of the property sector are moving, still we need to respect the Dow Jones Industrial Average (DJIA). With their indicators entering the critical zone, a proper approach on how to minimize our financial risk will be the major concern for us.

Yesterday or early in the morning the DJIA tumble -248.42 points to close at 8,200.14 points. Luckily there was an indicator to alert us in advance about the weakness of the world financial markets are facing now. Most of the world financial markets are in a critical level.

Whether this fall would be an opportunity to accumulate, we have to be well prepare for the worst. Right now I'm staying on the sidelines. Ability to read the indicators couple with the world financial news would be the most useful tools to use and to generate an awareness among us. I might be lucky this time but next time it might turn to be the other way round. My 15 percent share that I have not yet sold is HeveaBoard.

With this huge falls, there is still a different about 750 points from the DJIA previous new low recorded at 7,449.38 points. It not far away. It would be a disaster for the world financial markets if the previous low was broken ! Anyway the Obama effects that most of the people are talking about seems to be not working at all.


CP said...

Hi Jackie, I hv cleared Hevea yesterday with minor cut. Ouch. hehe

Good luck, ya


The Malaysian Explorer said...

Thanks for the warning.
Visit the Kuala Lumpur page
for quick facts and interesting information about Kuala Lumpur.

Jackie Lee said...

To CP...


To Malaysian Explorer

You are most welcome.....

Adrian Tan said...

Lately, the major shareholders have been disposing Hevea shares in large quantities. Is Hevea presently in financial difficulties or heading towards PN 17? I have bought some at RM 0.15.

Your insight is appreciated.

Adrian Tan

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