Thursday, May 6, 2010

It Seems That The Bears Are Controlling The Bulls Right Now.

Basically Selling In May And Go Away seems to be argue quite well at these moments. Looking at the overall Malaysian share market momentum and the world equities performance, it seems that we are entering into a correction mode. I don't think current momentum was a profit taking activities but rather a real correction coming in.

Whether how long the correction would be, it would depends on how the Bears will rule the world equities performance but it seems that it is quite difficult to determine how strong the Bears were. Right now we have to monitor whether there would be an opportunity arise? A technical rebound might emerge and it is not easy to catch or spot a counter that can easily rebound strongly. In order to catch a good rebound counter, we need to find which counter has already gone down a lot.

With the overall sentiments looks quite negative, it is advisable to ignore the current Malaysian share market unless we have some instinct that the counter we choose can really move up. As I have mention in my last few articles "Why I Wanted To Sell Before May", I did mention that if we build our portfolio during that time (Risk vs Reward), the Risk that we going to take during that time was high and it is not worth it at all. Today we can see there are so many counters going down bit by bit and some even went down up to double digits.

Whatever decision we make today will determine whether we can protect our portfolio and it is quite important that we know how to pull back when the share market is heading to the south. To have a negative feeling right now would eventually safeguard our investment and we will have to wait for another round of Bulls to emerge.

Dow Jones Industrial Average (DJIA) performance still didn't pose any great danger at these moments as long as the DJIA able to withhold the important key level of 10,700 points. Breaking that level would eventually turn the DJIA into a bearish situation and it is not a good sign at all.


prema said...

europe super super bull run. ha ha i still hold my precious shares. tomorrow my shares sure up more.

Jackie Lee said...

Good Luck .... Prema

Hope you make tons of money from the current share market performance.

Just be careful.