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.