Monday, September 26, 2011

Time To Accumulate??? Damm.. Too Cheap ????

Time To Accumulate!!! Make Your Own Judgement. The Malaysian share market experiencing major panic selling. Just a moment ago the FBM-KLCI was down about -55 points. Usually when there was a panic selling, it was a good time to accumulate. If tomorrow morning the share market experiencing another sharp falls, I would strongly suggest to accumulate.!!!

Tuesday, September 13, 2011

More Selling Pressure! Not An Easy Market To Trade With?

For the past few days, we can see there are still many counters create new lows. A low which is hardly we can see for the last one year. As we can see, it is not an easy market to trade with. Most of the good counters are experiencing more selling pressure with TopGlove take a very hard hit from recently sell down.

Basically I still prefer accumulate for trading purposes rather aiming for investment. Any accumulation done will based on any sell down from the share market. The Dow Jones Industrial Average still not stable yet at these moments with still so many uncertainties surrounding the European market. Based on the reading, we might see that the Dow Jones might be moving up and down around 10,500 points - 11,700 points these few weeks.

According to the bigger picture of the Dow Jones charts. In few months to come we might be facing more selling pressure from the BIG BOSS. This just a reading based on the charts and we cannot assume that it will happen. As we have already knew it and understand at this moment, the current share market trend was moving DOWN trend. So it is visible to trade carefully and look for more opportunity ahead when the time arrive (when panic selling occur).

Thursday, September 8, 2011

We Might Have Trading Opportunity Ahead? Was It A RIGHT TIME?

Was it a good time for investment or just for a trading purposes only? Looking and judging from the current market sentiment couple with most of the individual counter, it seems there are some trading opportunity ahead. Based on few indicators from the chart reading we might have some opportunity based on the what have really happen in the world equities market (from the sharp falls).

If we take at look on few counters like MEGB, KNM, MAS, GAMUDA , TENAGA and others, we might have some trading opportunity ahead. It might not be like what we use to experience during last sharp fall. Drop fast and climb very fast. This time it would basically climb up bit by bit. So CONTRA (T+3) would not be the right way to trade in this market. If we have strong movement then we would be lucky enough if that particular counter do rebound faster. Looking at the current volume I would say there are less interest from the investors cum speculators. Many of them have lost their faith in this market, so I would say maybe it is a good time to try for trading purposes.

Can it be for an investment purposes at these moments? I do not for seen that as I'm still looking at the Dow Jones Industrial Average movement. As my last article I did mention Dow Jones might be experiencing some problems in months to come. So it is important to go for trading opportunity. I might be wrong in the whole process but we can't deny the problems facing by the world equities financial market right at this moment.

One counter I do like to put some attention on it but I don't know why this counter showing more negative movement since the day it was listed until today. That particular counter was UOA Development Berhad. From my chart indicator and sign, it seems that we might have a trading chances on this counter. Based on the latest development on the latest announcement by the company and their financial reports, I just don't understand why this counter perform so badly. Maybe the world equities sentiments just doesn't favour this counter.

This is just one of my point of view and we cannot take it as a BUY signal. It was just based on the chart reading and most of the charts are showing some positive sign ahead. Remember it won't be an easy market to trade with as it might move just like a turtle. Bit by bit and day by day, we might feel quite boring on the way they move. The volume or the turnover just isn't positive enough. So be careful whenever we choose any counter.

Friday, September 2, 2011

Dow Jones Industrial Average Might Be Facing Big Hurdle In Few Months To Come ?????

Dow Jones Industrial Average just recovered recently from their recently low of 10,604.07 points with the index able to climb to 11,716.84 points. Based on the chart calculation the recently technical rebound perform by the Dow Jones seems to be reaching their goals. Any further gains would be limited.

This assumption was based on the two charts that I have posted. If we take a look on both of the charts pattern they were some similarity between the two charts. Whether they will follow the same pattern, it still pose another question?

Chart A -Period From June 2007 - Dec 2007

Chart B -Period From Feb 2011 - Aug 2011

Chart C - Period from May 2007 - Aug 2011

Chart A shows the Dow Jones Industrial Average movement from June 2007 till Dec 2007 before the index facing lots of pressure and went to its lowest during the year of 2008. Chart B shows the Dow Jones Industrial Average movement from Feb 2011 till Aug 2011. That is where we can compare the similarity between both of the charts. Both of the charts are telling us it happens during the financial crisis (2007 - 2008 Sub-Primes Financial Crisis and the collapse of Lehman Brothers Holdings). (2011 - European Financial Crisis and the US Debt Crisis).

This just one of the assumption based on the charts reading. Maybe there will be more bad news coming in the future but it is hard to say that the financial crisis will continue to a level where by it will bring down the whole world stock market even lower. At these moments the current sentiments shows that the share market are still inside the downtrend channel. So it is still important that any accumulation done should be based on the current trend. Whether the current trend will change from a down trend to upper trend? It is still early to tell.