FBM-KLCI Down -21.94 Points. An Opportunity?

Well, well, well I didn’t expect that the FBM-KLCI to make a sharp fall yesterday. The FBM-KLCI was down -21.94 points to close at 1,308.23 points. All the while the index has been quite supportive, standing tall and we can’t even expect any major falls that would happen as the FBM-KLCI seems to be control by the government funds.

Yesterday they can’t even hold on that level any more. They need to respect the world equities market performance and their momentum. No matter how long or how strong we are the forces that beyond our control need to be released. The government should let the markets moves freely.

Yesterday we can see some panic selling and some sell down happen in our market. Now the question is? Can we buy right now for another technical rebound? When the technical rebound will happen? Can the share prices move down some more?

Basically looking at the world equities markets performance right now, it is quite dangerous to go in. Any technical rebound play would only be considered once we have some huge panic selling activities all over our share market. During that time we can only consider to speculate because the Reward or the Return will be greater than the Risk.

At these moments we might have some opportunities ahead with one or two counters but it is not easy to find one. I would prefer to hold more cash rather than going in (speculate counters) right now because the world equities market still not stablized yet. The European region still have lots of holes need to be cover up and to patch on.

PATIENTS WILL PLAY AN IMPORTANT ROLE TO DETERMINE WHETHER WE HAVE MORE BULLETS TO MOVE ON.