Saturday, June 27, 2009

KL Composite Index Has Rebounded. Next Stage ?

Well I have learnt something new on the movement of our KL Composite Index couple with the shares prices movement. The index has rebounded in a very nice way. Frankly I never saw this kind of situation where by the share move up for 4 days until Friday since the rebound started exactly on Tuesday evening.

Well this time around I wasn't able to catch The Falling Knife because I'm expecting the share prices to go down some more on Wednesday but it didn't happen. When the Dow Jones Industrial Average was down about -200 points on Tuesday, I was a bit hesitating whether the share market is going to rebound. Maybe I have made a mistake in terms of my calculation.

This time around if we take a look on the way the share market rebounded on Tuesday and Wednesday, the market movement was a bit slow if we want to compare it on Thursday and Friday movement. If I want to compare it to previous trend of sharp downturn, the movement and the momentum is totally different. Previously the share market rebounded very fast, they can went up with double digits gains but this time around they are moving in a slow momentum.

So now the share markets have already rebounded, it is time for us to sell for those who have brought the shares few days ago? We might be seeing some profit taking activities ahead after the share market have rebounded for 4 days. The next course of the market movement will likely to follow with the awaiting announcement from our Prime Minister aka Finance Minister, Datuk Seri Najib Tun Razak next week on our stimulus economic news.

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