Wednesday, April 14, 2010

Dow Jones Industrial Average Movement Divergence?

These few days the momentum in our share market movement suggest that our share market don't have enough extra power to move on and some even suggest that our share market is lack of interest and confident. We still can make some earnings provided that we are buying the right counter.

I don't know whether what has happen recently in our neighbouring country Thailand can really help our share market as their country facing lots of problem in their political instability. Whether their fund manager will shift their current portfolio from Thailand to Malaysia like what happen during a few crisis happen in the past, still it would take a bit of time for them to reconsider. It happen once before, when Thailand tighten their credit control, most of the fund shifted to Malaysia.

At these moments what would I do right now is to monitor how the share market would react. Now it is not a good time to look for more opportunity as our share market really a hardcore to play with. It is not a healthier sign at all.

Looking back at the Dow Jones Industrial Average movement, it seems that the Dow Jones also don't have enough strength to move on. The indicator also shows some Divergence signal and this one is not a good sign at all.

Basically if this kind of sign appears, the share market will experience some negative impact, less energy to move on, side way market or maybe a sharp drop movement. Looking at the chart, we need to apply few strategies in order to strengthen our portfolio. For me, I don't like the chart pattern at all. I don't feel safe with current share market performance especially the DJIA. I might be wrong but for me I would still adopt some strategies to safeguard my portfolio.

I hope that my outlook was wrong......... HAPPY TRADING and HAPPY SONGKRAN DAY.


alexlee said...

The chart you shown us is exactly what happens now that index is heading to north but upward strength is losing power and DJ is struggle to stay above 11,000 points. Our KLCI is in range bound of 1340 points.
So, what's next ???

prema said...

pessimist! my remisier say government funds supporting market so nothing to worry about. and my 2 super counters all doing very well, thank you.