Saturday, May 29, 2010

Selling On The Run. Quiet Market Ahead?

Writing an article or sharing our point of view regarding about the Malaysian share market, it is not an easy thing to pen down all the time. Every time when I want to write some article about the performance of the Malaysian share market, I have to choose the word nicely before I can put it on the blog.

Sometimes our comment also can easily make people feel a bit angry but some would appreciate it. For those who understand the share market very well, they would understand what I'm trying to write all the time. I have been involved in the share market since my first purchase during 1987 World Stock Markets Crash (Black Monday). I have learned a lot but still the mistake would eventually come and go. It is just that how well our patients and our actions will be (making a decision), it will determine whether we can win more or lose more.

Few of my articles lately argue quite well the behavior of our Malaysian share market movement and indeed it did help me a lot in terms of my speculation strategies. Those who choose to follow will benefit from it. I have been studying and watching the movement on our FBM-KLCI since 1995 until now. They always tend to move the same way all the time. Once there is a panic selling .... opportunity arise.

Well let us talk about where our index is heading to next? FBM-KLCI has gone up last Thursday after experiencing some huge sell off on Tuesday (25.04.2010). Last week on Thursday (20.05.2010) inside my article FBM-KLCI Down -21.94 Points. An Opportunity? I did mention that "any technical rebound play would only be considered once we have some huge panic selling activities all over our share market" and they really happened on Tuesday.

Last Monday (24.05.2010) my article "Technical Rebound Around The Corner" did mention that this week we can expect some technical rebound ahead. Inside my article I did mention that "any more sharps falls will be dealt as an opportunity to accumulate".

As I have mention Tuesday turnover and Wednesday turnover done was an opportunity to Catch A Falling Knife. For those who has accumulated the shares, they were smiling all their way until late Thursday where by our FBM-KLCI went up +20 points to close higher (technical rebound).

Right now, we still have to apply the same strategies " SELLING ON THE RUN ". For those who have accumulated the shares on Tuesday and Wednesday, they need to unload their shares as the world equities market still shows no sign of stabilizing. With the North and South Korean issue, PIIGS (European financial crisis), Securities and Exchange Commission (SEC) suing Goldman Sach and the 2010 World Cup South Africa around the corner, the world equities markets might experiencing some zig-zag or a quiet movement ahead. There are so many bad news ahead and I'm expecting the FBM-KLCI will follow the same way.

From now on, we still need to monitor how the Dow Jones Industrial Average and the world equities market performance. Their movement will decide whether we still have more rooms or more opportunity ahead? No doubt they seem to be heading for downtrend channel still we need to open our eyes and look for more opportunity ahead.

Whether there would be another opportunity to Catch A Falling Knife, we will have to wait because catching a falling knife don't always happen all the time. They only happen when there is a PANIC BUTTON being press (Sell Off).


CP said...

Hi Jackie,

Yes, oversold .. many rebounded on Thu .. time to sell and run. Hehe

See ya around. What day is your Chart Nexus trader meeting? where?


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