Wednesday, March 10, 2010

FBM-KLCI New High - Nothing To Cheer About ?

Since last week, beginning of March 4, 2010 our Malaysian share market power up strongly and making a break through above their strongest resistance level of 1,300 points. It is a good sign but yet we still can't even make any gains out of it especially when we try follow the FBM-KLCI advance with most of the second liners and third liners.

Our share market performance especially the FBM-KLCI was tremendous but not for most of the individual counters. They can't even really move. Last week someone has mention to me that the article that I have posted was so negative. Actually my article was based on the movement of most of the individual counters. Our FBM-KLCI move because most of the blue chips shares are moving but for the second liners and the third lines counters, their movement are just like dead fish.

Basically if we ask most of the remisier, many of them have argued that it is not an easy market to play with. No doubt the FBM-KLCI is creating new high but most of the lower liners counters still stay near to their previous bottom. At these moments I don't quite understand why our Malaysian share market behaves like that.

This thing has been going on since before Chinese New Year until now and during that time we can't even find any positive rally that might happen. Frankly I would like to pen down some positive news or outlook for the FBM-KLCI but the performance of the overall markets didn't allow me to support this kind of positive statement.

Right now what we can see from here even though the FBM-KLCI is staying at new high, most of the second liners and the third liners must move or else we cannot call it a bull run (no big volume to support the overall market). At these moments it is quite important that the FBM-KLCI have a new strong supporting level at 1,300 points. This new supporting level will act as a major indicator to determine whether our share market is still alive or dead (second liners and third liners counters).

Dow Jones Industrial Average (DJIA) still plays an important role to determine whether the world equities markets still have hopes to move on. I don't foresee anything great for the DJIA unless the DJIA manage to surpass and break the 10,720 points level with big volume or big turnover done. Well this is just one of my opinion and we cannot take it that this opinion was a correct opinion.



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