Thursday, October 15, 2009

Wooow. FBM-KLCI At New High. Volume Increase. A Good Sign.

Yesterday the Malaysian share market for the first time breaks and reaches its 1 billion turnovers. This is a good sign and a very good sign but we have to remember that the turnover needs to be sustain through out the uptrend market.

If the turnover just build up for a day or two (above 1 billion) and the next day the turnover touches about 500 - 800 million then we must be on alert.

Volumes build up are very important in order to sustain the current share market movement. A lower turnover would means that they are lack of interest and don't have any interest to invest in this share market.

Speculation counters have started to show some positive sign with many of them have started to move higher. With this kind of situation we need to monitor very close for the whole time as the share market has already shown some positive movement.

With the volume and the turnover starting to build up, I would still prefer if there would be any potential counters that can become our market leaders. Right now our share market especially the speculations doesn't have any leader to leads the market.

Market Leaders can always maintain the uptrend movement of the speculation counters. No doubt the Dow Jones Industrial Average has touches their 10,000 mark or points for the first time since October last year, one would have to bear in their mind that the current Bullish sentiment in DJIA may have reaches it highest points. (Read this article *With Dow Near 10,000, Stocks Might Get Stuck*

So what we need to do now is " Be A Trend Follower Not A Trend Predictor "

1 comment:

edwin sanchez said...

Sometimes I feel like everybody treats the market as such an abstract impersonal concept… and it is in a sense. It represents the supply and demand of money free for investing I suppose. But what about the pure heart of it - at the core of the stock market isn’t it just someone giving someone else money to do something with it in return for a portion of the hoped for profit?