Can The Dow Jones Industrial Average Touches 10,000 Points ?

As we can see until now most of the world equities market are following the movement of the Dow Jones Industrial Average. With our current market situation right now moving side ways, we have nothing to cherish about. They seem to be hanging around waiting for any new direction before any attempt to move higher or lower.

Basically our share market performance always moves accordingly with the world equities market performance and what we can do right now is to examine the current movement of the Dow Jones Industrial Average.

Based on the chart the DJIA is facing a very strong resistance. The resistance level would be around 9,650 points level given a plus minus of around 50 points. Any attempt to break this Strong Resistance level will bring the Dow Jones Industrial Average back to 10,000 points level. So right now it is quite tricky to play around with the current sentiment as the Dow Jones Industrial Average is doing quite well with the volume traded improving.

Either the Dow Jones Industrial Average will go up or go down; we will have to monitor their current movement these few days. But if we check at the volume done, it seems that they have more opportunity to move higher. But sometimes when the Dow Jones perform quite well our share prices cannot perform and it is quite hard to trade with our current sentiment so dull. If the Strong Resistance cannot be break then it will pull down the world equities market performance.

This is just one of my opinion and we cannot take it that it will happen. It just that we need to share more opinion on the current sentiment.

FBM-KLCI Moving Side-Way ?

As we can see, the Dow Jones Industrial Average play an important role in keeping up the world equities market intact. They even went up and created new high with promising increasing volume traded. How far they would go ? It is still early to determine that situation.

No doubt the FBM-KLCI went up but still most of the shares prices still cannot perform accordingly. With the volume traded still going lower and lower, it is quite hard to get a closer look whether our market is going for correction or just moving side-way?

Last week most of the share prices were moving side-way with no indication that they are going to move higher. From my point of views, I would rather stay at the sideline and wait for further promising indicators appear before any recommendation can be made. But sometimes if we re-think about previously rally (last one month), it seems that our share market was creating a SUCKER rally especially for the speculation counters.

FBM-KLCI Targeting 1,100 Points Level ?

One day up and another day go down. If the share market behave with this kind of situation, it is quite hard to look for a technical rebound. It seems that the market sentiment still dull with no volume to support the market movement. Volume build up is quite important in order to support the share market momentum.

Lately these few days the Dow Jones Industrial Average play a very important role in bringing up the share market sentiment but still it didn't help us a lot. With the current sentiment going up and down, it won't be easy to look for an opportunity to strike (buy at low). PATIENTS will be the key word for us in order to look for an opportunity at the downside.

I would rather wait and consider when the index reaches at around 1,100 points level where by this level would react as a strong supporting level. In order for a pure technical rebound to happen the share market must experiencing a huge sharp drop then only the share market can rebound perfectly.

Now the question is, can the FBM-KLCI going down to 1,100 points level ? If can but when ? If no where would be the next course for FBM-KLCI ? It all depends on how the world equities market performance.

Right now it seems that we are playing a cat and mouse game where by at the end, no one is winning but ending up we are losing our time and money. I'm not trying to be bearish but rather to stay at the sidelines as the sentiment right now didn't allow us to speculate more.

The Bears Have Taken Over The Bulls ?

Judging from today movement, it seems that FBM-KLCI has ended its uptrend wave. We are still in the battlefield but if we can hold on and wait, we will have a chance to win this big war (technical rebound). Basically looking at the sentiment right now, I would like to say that the Malaysian share market has turn bearish. This just one of my opinion and we cannot assume that this opinion is correct.

It seems that there so many indicators showing that the blue chip counters and most of the second and third liner counters are not creating new high but instead they are moving lower and lower. World equities market are not performing well. They are breaking their recently low and this is really not a good sign.

Whether the world equities market are moving into a profit taking or a correction, it is not worth it to put our money inside as the percentage of winning is very low. I'm really looking forward for a pure technical rebound. Whether it will happen or not, we will have to wait and see.

My last advice, it seems that the BEARS have taken over the BULLS. So this is not a good time to invest or to play along with the current sentiment which is so bearish.

FBM-KLCI Suffer The Most After Few Weeks Of Up. End of Up-Trend ?

It seems that the Malaysian share market has ended it uptrend wave. Whether the trend is over or not, what we really need to worry now that the current trend has turn into very negative sign. We might be seeing some rebound after a big scare and a sharp fall from Shanghai Exchange.

Shanghai stocks dropped 5.8% Monday, suffering their biggest percentage drop so far this year, as lower commodity prices, persistent worries over tightening in bank loans and weak economic data dampened investor sentiment.

No doubt this the second time that the Shanghai has bring down the Asian equity market into a panic selling situation still the indicator suggest that most of Asian equity markets are entering into a profit taking or correction mode.

Right at these moments what we really can do right now is to look for a technical rebound. Some of us might be losing this opportunity to win recently BATTLE as most of the speculation counters are not moving but still it is not the end for us to win a WAR. Try to find an opportunity and look for pure technical rebound. Who knows ? Maybe this technical rebound will win us a WAR.

Dow Jones Industrial Average seems to be heading for correction after climbing for few weeks. We need to respect our big brother as they will decide where the world equities markets are heading to. But judging from their recently move, they seem to be exhausted.

Pull Out From The FBM-KLCI ?

Like it or not, it seems that more and more counters are performing badly and some even appear to have some selling indicator. Should we pull out from the market at these moments?

Based on the chart indicator, right at these moments we should be well alert whether this share market still has potential to move on as we can see there are so many counters that have been trying to push higher especially the speculation counter for the past one week but they were unable to penetrate their resistance.

It appears that current movement in FBM-KLCI have more potential to move down rather than going up as the Asian equity markets are showing more sign of profit taking or correction. Our former leading market leader - KNM Group Berhad, seems to be going down bit by bit and even created new low. Bad sign.

What we can see from here is; it is not worth it to pump in more funds or money inside the Malaysian share market. Current market sentiment has started to show more bearish sign and it is quite dangerous if we are not careful enough. Cut loss would be the last option that we need to use if there is anything bad really happen.

FBM-KLCI Selling Signal ?

Seeing the share market performance yesterday they move quite nice but when we really put our money inside, on the next day the share market performance behave negatively. It has been happen quite some weeks already. It is not an easy market for contra player.

For those who really can pick up the share, they tend to win in the end. Looking at the market sentiment right now, we still can consider that the Malaysian share market still can perform but we need to be careful because some counters didn't perform quite well. Some even went to create new low (KNM).

One more thing I need to address to most of the market player. I don't know how far our Malaysia equity can perform but based on the chart indicator reading, we need to be well alert. Some selling signal emerged. But sometimes we cannot take this as an indicator to determine that the share market is gone. We just need to be pre-cautious. Form my point of view it is not worth it to pump in more money inside this market.

FBM-KLCI Still Week ?

Current share market performance can be considered quite ok. The blue chip shares are not moving anywhere right now. They seem to be consolidating at these moments. Quite a number of counter still moving and creating new high.

Most of the famous speculation counters still not moving anywhere. I'm still thinking whether the speculation counters will end just like that after this uptrend has finish its story. Until now I still can't find the answer why most of the speculation counters is not moving at all. Maybe this is the last uptrend wave and it is quite tricky.

Last Friday I did post a chart stated the FBM-KLCI is posing a round pattern. I hope that it will not happen because it will drag quite sometimes and for long. Please refer HERE for last week article. The world equities market performance currently especially in the Asian region are taking a pause and consolidating. Well maybe the FBM-KLCI is doing the same thing, following the region performance.

Though Time For Speculation Counters ?

Last Friday the overall Malaysia share market performance reacted quite negatively but the Dow Jones Industrial Average perform very well. Frankly I have no idea why all the sudden the speculation counters close lovely on Thursday but on Friday evening the share prices (speculation counters) close so badly.

Sometimes when we brought and pick up the shares waiting for it move up but all the sudden the share market performance was so bad even we have a bit scared. Although the DJIA close so lovely but sometimes our share market performance did not react positively.

My suggestion on Thursday that most of the speculation counters shown more chances heading to the north but I was wrong. It is not an easy market to play or to invest in this share market unless we really want to go for medium term. But looking at FBM-KLCI staying at 1,184.88 points, I would rather call off my medium term investment.

Will there be any hope for the current share market to move on higher? I would rather say that most of the blue chips counters and certain counters still have more rooms to move on but for the speculations counters I would rather not to comment whether they can go up or go down. They seem to be moving sideway. We can call it "Range Trading". Buy at their low and sell at their high. That is how their current movement right now.

FBM-KLCI Losing Strength ?

Yesterday evening the Malaysian share market reacted quite positive especially the speculation counters. From my point of view, I think that the speculation counters have potential to move up. Based on their movement yesterday, it seems that they have the ability to move higher.

As we can see the FBM-KLCI perform quite well these few days. But their movement showing that they are losing some strength. At these moment the sentiment still quite bullish with more and more shares are creating new high. If we want to follow the sentiment right now, we have nothing to worry about.

But based on the FBM-KLCI movement, we need to monitor further how the FBM-KLCI going to move these few days because based on the chart wise, they seem like forming a round. FBM-KLCI need to go higher is order to cancel that particular pattern. This just a pattern only and we cannot take it as it will happen. This is just a pre-caution measure only.

Cautious Ahead For FBM-KLCI ?

Yesterday for the whole day I was watching how the share market performs. In the morning the share market was moving quite well but all the sudden in the evening the speculation counters reacted badly although the FBM-KLCI perform quite nice.

If we really look at most of the speculation counters, they seem to be some selling and event they break their recently low. No doubt the FBM-KLCI closing at new high but we must be very careful on the reaction perform by the speculation counters.

Yesterday I came a cross an article stated that the Malaysian Share Market Overvalued. I was wondering whether our share markets are really overvalued? We can say that the sentiment right now is quite bullish for the blue chips counter but not so good for those speculation counters.

It is not easy for the FBM-KLCI to come down as the share market sentiment still strong. Maybe it would take some time for them to adjust its movement. But we still need to respect the Dow Jones Industrial Average because they might make the share market turn around.

REMEMBER - RM10 billion being raised for the Amanah Saham 1Malaysia, which goes on sale on Aug 5, there might be an influx of funds into the market to absorb any potential profit taking.

Article : Malaysian Stocks Overvalued : OSK

Malaysian stocks, trading near a one-year high, face the risk of an “Edwardian Summer” that may end with a “crash” as shares are overvalued amid shrinking earnings, according to OSK Research Sdn Bhd.

“As with any Edwardian Summer, the longer it lasts, the more out of touch it gets with its fundamentals, and the greater the crash at the end,” OSK said in a report today. “The market is definitely overvalued.”

Investors should sell “into strength” and buy selected shares such as property developer Malaysian Resources Corp and Top Glove Corp, the world’s largest rubber glove maker, OSK said. It removed Public Bank Bhd from its top five picks.

Top Glove, the world’s biggest rubber-glove maker, gained 4.8 per cent to RM7.23 at midday, set for the largest increase since July 7.

The benchmark FTSE Bursa Malaysia KLCI Index rose 9.3 per cent last month, the steepest increase since April. The measure has risen 34 per cent this year, as the government’ stimulus plans and a RM10 billion fund set up to invest in publicly traded companies helped buoy the market.

Prime Minister Datuk Seri Najib Tun Razak, who took office on April 3, has announced stimulus plans valued at RM67 billion to revive economic growth.

OSK likened the market’s outlook to the “Edwardian Summer” in the UK during the reign of King Edward VII from 1901 to 1910. The Edwardian era was regarded as a romantic golden age of long summer afternoons, garden parties and big hats immediately prior to the First World War.

The stock index is trading above 17 times 2009 earnings, higher than the average of 15 times since 2000, OSK said. Companies in the index were trading at 15.5 times in 2006 and 2007 when earnings growth was averaging 30 per cent growth, it said.

With earnings set to shrink in 2009 and grow at only 12 per cent in 2010, the current price to earnings multiple is “excessive,” it said. -- Bloomberg

FBM-KLCI Still Have More Rooms To Move On ?

Yesterday the share market performance was not good at all. Maybe it is because of the new implementation of a new system introduced into the share market. Basically total overall market performance can be consider quite nice although we are seeing some profit taking emerged during the morning session. Most of the world equities market performances still perform quite nice.

Consider the world equities market performances, FBM-KLCI still have the capability to move even higher. How high the FBM-KLCI will go? From my point of view the FBM-KLCI is targeting about 1,190 points to 1,200 points. This is based on the chart that the next target should be there. There is a gap to be fill that was created last June 2008.

Today we can see the FBM-KLCI has move up about 100 over points but not many speculation counters are moving. It is quite hard to trade this few days. It is not an easy market to trade. If we don't have enough patients we might be a loser when the share market has ended its trend. This is to show that in order for us to win this battle, we must be able to pick up whatever shares we purchase if we feel that particular counter can move. Contra is not an option right now.

When this article was posted, the Dow Jones Industrial Average was at new high. DJIA was up about +85 point at 9,257.00 points.