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