Tuesday, January 6, 2009

KL Composite Index Upside Still Intact.

Sometimes it is not that I want to go against those who think that KNM got problem. It is just that how they are going to elaborate the terms nicely. Don't tell me that KNM share price crash because of some unhealthy insider news.

If the share prices of KNM fell sharply before financial crisis then I would agreed with their statement. But don't mention it when the share market are in a crisis. Usually my investments is solely on how the share prices behaved and how they support their share prices or being support by funds or investors.

Today the share market react positively with some roller coaster move to digest its recently huge gains in share prices and the KL Composite Index. With this kind of correction, it is healthy for the market as this would be another add up power or fuel for most of the speculation counter to move.

Crude Oil Prices is breaking the USD 50.00 at this moment. Whether it can hold at this level or not, the crude oil prices is steadily make it ways to moves further up. A trend reversal for crude oil prices ? Usually when the crude oil prices move up, the share market will react positively.

Crude Palm Oil prices also move sharply up in these few days. Today the Crude Palm Oil close at RM 1,980.00 per tonne, nearly RM 2,000.00. A good sign that will spur the Malaysian share market. Still remember my article on January 2, 2009. (Will KL Composite Index Start The New Year With A BANG ?). Inside the article I did mention about commodities. Read it and you will understand.

Right at this moment I cannot point out when the market is going for a correction or not. It will solely depends on how our market would react when time has arrive (overbought) and the arrival of Chinese New Year. I can only send a message when is the right timing to accumulate into the share market.

Barack Obama is planning to announce another USD 775 billion to help the US economy. Obama's estimated USD 775 billion plan could serve as the next step in the recovery efforts. While most of the Fed's programs have been aimed at boosting lending, Obama's economic stimulus plan is aimed primarily at job creation and consumer spending. Hopefully this news will spur up the Dow Jones Industrial Average further and will lead to the world financial market to go up further.

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