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.