Tuesday, April 21, 2009

Correction Has Arrived ?

Finally, the corrections set in but for how long? Yesterday the Dow Jones Industrial Average performance tumble -289.60 points to close at 7,841.73 point. Financial stocks suffered some of the day's worst declines: Bank of America plunged 24.3 percent and Citigroup fell 19 percent.

Those two components of the Dow Jones industrial average contributed to a daily loss in the index of 290 points, or 3.6 percent. That was the biggest Dow drop since early March, before the market's big rally from nearly 12-year lows.

Right at the moment, we have to monitor the situation closely. This morning the share market still perform quite well. With most of the counters still stand near to their recently high, it is quite impossible to make any decision to accumulate right now. Yesterday the KL Composite Index showing a negative sign.

Based on Japanese Candlestick reading, yesterday the KLCI perform a "Hanging Man" signal (please refer here). The Hanging Man candlestick formation, as one could predict from the name, is a bearish sign. This pattern occurs mainly at the top of uptrends and is a warning of a potential reversal downward. If today the KLCI still closed all the way down with huge minus then it will confirm that our share market is going for temporary corrections.

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