Friday, June 12, 2009

WHO: Swine Flu Pandemic Has Begun, 1st In 41 Years

WHO (World Health Organization) raise the pandemic warning level from phase 5 to 6 for H1N1 virus— its highest alert — after holding an emergency meeting with its flu experts.

Whether this will be the threat to the current on going Bull market, we must monitor how the share market is going to react with the latest development. This is quite a serious case as the flu already reaching 74 countries who had reported 28,774 cases of swine flu, including 144 deaths but it seems that this flu is not really alarming to people health compare to SARS. Still can find some medical for treatment.

I was wondering whether this new level of warning will shake the world market performance at these moments. Current world equities market performance are still in the bull run and any bad news will bring more harm to the share market as the current world equities market are due for pure correction.

But this would also depend whether this H1N1 would have any impact on the Dow Jones Industrial Average in these few days of trading. Right now the DJIA performance still look healthy but if we check for the last three trading days, more signs of a tired market are illustrated in the 3 consecutive daily stars in the Dow, whereby the closing prices were 5-10 pts away from their opening price on Friday, Monday and Tuesday.

Such sign of indecision occurring at the top of a +35% market suggest increased vulnerability to a retreat. Wednesday's trading session is already providing the negative confirmation after such protracted indecision making in equities. That was happened on Wednesday, so we need to monitor for DJIA Thursday closing. No matter how the Dow Jones is going to perform, as long as the index manage to climb higher, chances that the current world equities markets will survive for a while.

When this article was posted the DJIA was up +110 points at 8,849 points.

2 comments:

Kingsmen said...

give you guys a hint....two reason why this company is a must BUY. 1stly....Pandemic level....2ndly...PM just made a proposal that malaysia be made a reginal hub for laboratory reserarch!

Lastly the volume of shares trades has steadly been active now.

Good luck guys.

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