Monday, January 24, 2011

Quiet Market Ahead Of Chinese New Year Celebration.

Last week was quite a hard week for us. Many of them were caught by surprise the way the share market moved. No doubt the share market has been moving for almost 2 weeks and last week was a correction week still we cannot treat it that the share market has gone. Maybe it is good and healthier sign for the FBM-KLCI to take a rest.

How the share market will fare this week? It will be a quiet week ahead towards Chinese New Year celebration. At these moments we might have some technical rebound occur this few days after the share market had went for correction for the last few days.

Based on the chart wise, most of the counters right now showing more correction signal and it is to risky to catch where are their bottom. As long as the FBM-KLCI still can stand above the 1,529 points, I would not feel any dangerous sign ahead as there is a rumour that an election will held this year. If the FBM-KLCI 1,529 points cannot stand as their strong supporting points then we will have to change our strategy of playing.

However if we take a look on most of the world equities market, they tend to show more weakness sign ahead. I was hoping that it is just a small correction in the process rather than a major correction set in but with the help of the Dow Jones Industrial Average, the world equities market still able to keep on to their track.

What would I do right now? With the current condition right now, technical rebound might be happening soon. So stay alert and look for opportunity to arise. Catching the right timing will determine whether you can make some gains out of it.

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