Tuesday, January 13, 2009

World Financial Index Indicators Still Bad. Stay Out.

World financial market seems to be getting worst. With more negative news still flowing out, it is impossible for the share market to move forward. Today the KL Composite Index went down -9.87 points to close at 913.70 points.

Currently the index still stay in the safety channel provided there is no major movement in the index in these few days. If there is a huge movement on the index (going down) then the indicators might poise an ugly picture.

Crude Palm Oil (CPO) prices today tumble across the board with the March 09 contract prices down RM -158.00 to close at RM 1,830.00 per tonne. This huge tumble today also a bad indicator for the Palm Oil counters.

In my previous article, a cautious approach on how to trade with the current momentum should be applied in order to stay alive or to maintain our current positions. Currently with most of major financial market showing a negative sign, it is better to stay out from the share market and wait for a better indicator and leads before any decision can be made.

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