Thursday, July 30, 2009

Need To Press ALARM Button for FBM-KLCI ?

Yesterday the Bursa Malaysia equities take a pause after having a small run recently but yet the profit margin created was too small. Not every counter is moving higher and some of them not even move at all. Yesterday also we were experiencing some panic selling during the afternoon session. All because of some panic selling occur around the Asian equities market.

Do we really need to worry about the share market condition right now ? Was it the end of the current trend after the FBM-KLCI has move so strongly for past two weeks ? Basically I won't say the end of the market because current market sentiment was bullish especially for the blue chip counters.

The thing that would worry us is the Dow Jones Industrial Average (DJIA). For the past few days the DJIA seems to be fighting very hard with the Bear's in order to stay above the 9,000 points level. Frankly if the DJIA break the 9,000 points, we cannot straight press the panic button yet as we can see from the chart that the DJIA might be retrace a bit in order for it to go higher if the supporting level of 8,600 point didn't break at all.

As a player in the market, I choose not to see the DJIA break the 9,000 point but to see that the DJIA can go higher this few days. They have already tried to maintain at this level for few days already. We cannot be totally bullish on the world equities market right now as they are adjusting their trade after having some good runs.

The Malaysian equities market especially the blue chips have already moved higher and it is normal for them to have some profit taking activities. We can monitor and see how our share market going to move these few days. What we can do right now is be a trend follower but not a trend predictor.

Monday, July 27, 2009

Accumulate On Weaknesses ? Opportunities Arrive ?

Can we access right now that the Malaysian share prices still consider cheap to buy? Although the FBM-KLCI went up so much and touches its resistance level at about 1,160 points, still there are too many counters share prices are not moving accordingly to the performance of the index.

We can see that the Dow Jones Industrial Average is moving quite strongly and it seems that the Bears cannot fight with the Bulls at these moments. With the Dow Jones staying above the 9,000 points, we might see a near term Bulls run emerge.

Basically if we really look closely at the index and overall world equity market performance, most of the indexes are reaching new high. This shows that most of the underlying tone and sentiment were quite bullish. So it is not easy for the share market to come down at this period. We might be facing a small profit taking but not a correction. Hence any decline will turn into an opportunity to accumulate.

There will be some continuation run by most of the speculation counters but we must be careful which counters to choose. Overall market will not be a board based. They will move quite selectively. Choosing right counters will determine whether we can build up our profit and our confident level towards this market.

Recommendation. (Green Packet) I have been watching this counter since last week when I was in Bangkok, Thailand (19.07.2009 - 25.07.2009). It seems that this counter is building up its position at this moment. Any sudden surge in volume will suggest that this counter is moving to the next target of RM0.845 (Green Packet).

This is just my point of view and it cannot be consider that it will move up or move down.

Thursday, July 23, 2009

Opportunity To Accumulate Shares ? May Be It Is The Time.

FBM-KLCI have reach its resistance points of 1,160 points. Whether the index still have enough strength to move on, it will depend on how well the FBM-KLCI will digest its recently running. The blue-chips counters look very strong with most of them already register double digit gain.

At these moments we might be seeing some opportunity to accumulate some of the speculation shares as profit taking already emerged yesterday.

Whether this profit taking will last for 1 or 2 days or maybe even longer, the capabilites to choose the right counters will be treat as an advantages for us to make some income. Choosing few potential counters is not easy because we want to make sure that it can move and we can make quick profit from it.

Tuesday, July 21, 2009


How far this formation is going to happen. If this formation do take place, then we will have very big chances that the Dow Jones Industrial Average can reach the 10,000 points.

Can we count this chart is an Inverted Head And Shoulders ? Here are some of the article that we can refering to. It is quite important to study it deeply before we can call it an Inverted Head And Shoulders.

If this formation does take place then we will have a real trend reversal. Please refer the article of Head and Shoulders HERE.

The Inverted Head and Shoulders Pattern.

The Inverted Head and Shoulders is typically seen in downtrends. (What's noteworthy about the Inverted Head and Shoulders is the volume aspect. The inverted left shoulder should be accompanied by an increase in volume.

The inverted head should be made on lighter volume. The rally from the head however, should show greater volume than the rally from the left shoulder. Ultimately, the inverted right shoulder should register the lightest volume of all. When the market then rallies through the neckline, a big increase in volume should be seen.)

To Accumulate Or Not ? Dow Jones Eyeing Profit Taking ?

Watching from this morning share market behaviour, I think that our Malaysia share market are behaving just like how they behave during their recently run up in the month of April, May and June.

They look so strong even the FBM-KLCI experiencing some profit taking activities. Usually when the FBM-KLCI is resting or consolidating, second liners and the third liners counters will take over the share market performance. Right now is the hardest part to consider whether to build up our position or not?

As we can see based on the Dow Jones Industrial Average chart, the DJIA has gone up for 6 days (about +700 points). Even though the DJIA is already moving up from their lowest point, still we need to monitor these few days whether the main resistance can be taken out in order for the DJIA to sustain and stay above 9,000 points level and higher towards the 9,600 points. Usually whenever they reach the resistance level, they will take a pause before any new attempt to breaks the hurdle.

Profit taking activities will emerge after recently strong run-up but with the volume build up for the DJIA, there is a possibility that the profit taking activities will be well absorb. How our FBM-KLCI will fare it if the profit taking activities emerge? Was it a right time to accumulate? Whether it is a right time to accumulate or not, selection of the right counters will be the main priority.

Monday, July 20, 2009

Good Performance From FBM-KLCI.

Another tremendous continuation move by FBM-KLCI. They really know how to perform. In the afternoon session the KBM-KLCI added another +15.62 points to close the afternoon session at 1,136.52 points. No doubt the volume still consider not high enough but most of the counters are showing more sign of moving towards the north pole. (My suggestion right now - BUY and HOLD)

Anyway we must be cautious because not very counter is moving. I'm anticipate it to be cautious because our FBM-KLCI has already gone up about 70 points for the past 5 trading days. It is not a warning but rather to be careful not being caught during a profit taking activities emerge for FBM-KLCI.

This time around the share market performance and the FBM-KLCI really catches lots of surprises to most of the punters and players because of its sharp move towards the level of 1,135 points from the level of 1,065 points register last Monday (13.07.2009)

Saturday, July 18, 2009

FBM-KLCI... The Best In The Region .....

Writing an article about the share market it is not something new at all. Many of them are writing it according to what they think at that time and share it among all their readers. The blogs are open all the time for anyone to read but sometimes you might feel boring if the blogs are not interesting enough.

Sometimes their articles on certain news did bring some benefit for all of us to share but some don't. Reading an article about the on going news on what is happening in the share market and trying to understand the meaning of it can be consider quite important in order for us to have enough confident whether we really can make some income.

But to certain limit some of the readers do not get it right when they read the article. They are expecting those writing the article must always predict the correct movement and where the share market is heading to? I have always surf and look into many bloggers blogs, comments and every time I will take it as an advice to make my own judgement in my trading positions.

I'm not against some of the readers but sometimes they need to understand that writing an article cannot always be perfect and accurate. BLOGSPOT is always a personal website and a blog to share what they think about at that time.

Back to the Dow Jones Industrial Average. DJIA are already out of the danger after advancing for more than 5 days. They shoot up just like the ROCKET straight to the sky. Current movement suggested that the Dow Jones have more potential to move after building it base so strongly with the help of some stronger financial results from Dow Component Shares.

FBM-KLCI is also doing very well and we can call it among the best in the region because of its ability to penetrate and create a new high. With the index still stand at new high, any profit taking activities emerge will be treat as an opportunity to accumulate in order to get a better price.

Some of my friends are saying that they are not sure whether current movement was a real Bulls or a Bull Trap ? But if we want to judge the current sentiment along with the Blue Chips counters, I think we are running into small Bull Run next week.

Wednesday, July 15, 2009

FBM-KLCI Hits With A BANG. Target for 1,150 Points ?

Wah Lahhhhhhh ...... A BIG CHEERS for FBM-KLCI. I didn't expect that in two days the FBM-KLCI managed to climb about 35 points. Today the FBM-KLCI managed to went up another +17.61 points to close at 1,097.24 points after the FBM-KLCI surged +15.97 points yesterday.

For the whole evening I was watching the momentum of the overall speculation counters. Most of the counters are flying high with an indication that the share market might be aiming to go higher at 1,150 points.

Based on the chart reading, if we take a look on the Symmetrical Triangle perform on the FBM-KLCI, the early breakout from the triangle (2/3 formation) couple with high volume done suggested that the share market have more rooms and potential to move higher.

Today was indeed quite a surprised for me because I didn't expect it to happen so fast as last Monday most the counters were at low and some even created a new low. It seems there is no indication on Monday evening market that the share market is going to move higher. All the sudden most of the counters make a huge movement yesterday and they continue to do so today.

With the FBM-KLCI breaks and create a new high today, it is likely that the most of the speculation counters even the blue chips have more room to move on. Even today our share market look quite good but we still need to respect our BIG BROTHER - the Dow Jones Industrial Average. They are still not out of danger zone yet but this week will be exciting week for DJIA as they are going to announce lots of financial results from their financial institution. Happy Trading.

Tuesday, July 14, 2009

Side Way Move From FBM-KLCI ? Where The FBM-KLCI Is Heading To ?

Well, the Malaysia share market didn't look so good at all. Lack of volume and lack of leadership to lead the market. This one not only happens in the Malaysia share market but it also happen though out the Asian equities markets.

If we take a look on overall performance, it seem that the most of the speculation counters were heading towards south pole but one thing for sure our FBM-KLCI still stand very strong against the overall market performance.

I was wondering whether our markets are moving in a consolidation phase or it is just being supported by our government's funds. Most of the blue chips counters are standing very strong to support the FBM-KLCI. Right at these moments, we still need to take a look on how the Dow Jones Industrial Average is going to perform these few days.

As I have mention in my last article that the DJIA might be performing HEAD and SHOULDER formation. It is quite tricky now to determine that this thing would happen or not because the DJIA still in the early process of adjusting its course.

So at these moments anything can happen. I won't be surprised if one day we might be seeing all the sudden the DJIA took a deep plunge (-300 points to -500 points) because of this formation. Who knows ? Current crude oil prices (USD 60 per barrel) also telling us that the equities market were not doing well. Usually when the oil prices move up higher then the DJIA will move forward. This time around they seem to be adjusting their recently high after touching USD 73 per barrel.

So what we are going to do right now when we have this kind of situation - prices of speculation counters went down but the FBM-KLCI is not going down ? MONITOR the overall world equities market performance before any decision can be made to determine whether our share market will stay on course after experiencing a correction for the past one month.

When this article was been prepared the DJIA was up +143 points at 8,290.00 points

Thursday, July 9, 2009

Dow Jones Industrial Average Creating Head And Shoulder Formation?

It seems that our Malaysian share market is consolidating. The total overall volumes were very low. With this kind of situation, we might be seeing that the share market is not going to go up in these few weeks. We might be seeing some side way move.

Dow Jones Industrial Average still experiencing continuation falls from day to day. There seem to be lack of interesting news to push up the market. With this kind of situation, it is not a good time to build up our strategies as the DJIA still very weak.

If we take a look on the charts, it is likely that the DJIA has more potential to go further south rather than north. Based on the chart, the DJIA should stay above 8,250 - 8,300 points in order to make sure that DJIA still have potential to go up after going through some correction lately.

But if we take a closer look on the chart, there is a possibility that the DJIA are going to perform HEAD and SHOULDER formation. This is a very bad sign if this formation does take place. We must be well alert if this kind of situation does happen because Head and Shoulder formation are very negative to the share market. If this thing really happens, then the situation for the world equities market will turn to very bad situation.

Monday, July 6, 2009

KL Composite Index Going Up or Down ?

I'm quite busy these few days as I was renovating my room. I have less access in Internet as I can't access it from my room. I'm renovating it not because I want it to but it is because all the sudden my room tiles crack up. So I have no choice but to keep my self busy handling the whole room, dismantle all my furniture and move it to the living hall.

Back to the share market. The KL Composite Index still standing tall but how long they will going to stand like that? Will the index going to go up or go down? Last week the share market sentiment was not good at all with UemLand Berhad leading the way to the sell down on overall market. No doubt that on last Friday the share market was rebounded, still we cannot take it as an opportunity to go for medium terms.

As we can see we still need to respect the Dow Jones Industrial Average. Last week the DJIA was experiencing a huge sell off on Thursday before the share market close on Friday. At the moment the DJIA look more fragile compare to the Asian equity market. We need to determine where the DJIA is heading to before any decision can be made. The bulls are still resting while the bears are keep on charging towards the bulls.

Wednesday, July 1, 2009

New Economic Policy (NEP) By Prime Minister ?

Well we can see that overall share market look exhausted. In the morning the KL Composite Index move so nice with some of the speculation counters look bigger potential to move higher and all the sudden the share market lost the momentum.

At the moment, I'm still looking on how the KL Composite Index going to perform. After last week major sell off and 5 days of rebound, finally the share market take a pause and went down with some profit taking activities. Can we consider whether this profit taking is a correction or just because of half yearly report closing ?

Many investors or the punters are waiting for a major announcement by our Prime Minister Datuk Seri Najib Tun Razak after he launching the Invest Malaysia week. Yesterday Datuk Seri Najib Razak announced that the government has dropped the 30 per cent Bumiputera equity requirement for Malaysian firms seeking public listing, the cornerstone of the New Economic Policy (NEP), but they will have to offer 50 per cent of the public shareholding spread to Bumiputera investors.

Will it be good for some of the companies seeking for listing at Bursa Malaysia ? Or this is just a gimmick of the new Najib's policy 1 MALAYSIA ? What ever it is, I think this is quite a good news especially to the Malaysia equities market but the current share market movement is still uncertain with the volume still stay low to support the market to move up.

It will be advisable to take a better clue from the Dow Jones Industrial Average before any decision can be make as the DJIA is still searching for a clearer picture whether they are going to move up or move down ?

Please refer HERE for further announcement by our Malaysia Prime Minsiter Datuk Seri Najib Razak.