Friday, October 14, 2011

Remember Current Share Market Sentiments Still Downtrend!

Don't be so excited, current share market sentiments still DOWNTREND!!! Since the last 26th Sept 2011 panic selling until now, the Malaysian share market have experiencing quite huge upside or I will call it as strong technical rebound. This rebound was quite big with the ability to make huge income but not an easy market to trade with if we are going for contra period.

One thing for sure we can see for the last 3 weeks the Malaysian share market have rebounded. Can we still assume that the share market is going up and up again? Can the current momentum sustain at this phase? I'm doubt about it. From my point of view, I would rated it as selling opportunity to take our gains or to cut our losses into small amount rather the huge amount of losses in terms of the prices we have seen 3 weeks back.

Current share market momentum still downtrend and we should treat it that the sentiments might face another big pressure in few weeks to come. There might be another sell down, so I would not rate current sentiment as an opportunity to accumulate and keep it for medium to long term. Basically we cannot assume that the share market have already survived the biggest Bears slaughter but the biggest question we need to ask; whether would there be another BIG Bear's appear in few weeks to come? Can this share market sustain that pressure if there is another selling pressure coming in? Everything have to depends on how the world equities market are going to survive these few weeks to come.

Based on the Dow Jones Industrial Average chart we still might be facing another biggest slaughter that we have ever seen. I don't know how true this assumption will be but based on the chart, we must always be alert and careful all the times as we don't want to run out of bullets when the opportunity strike again. At these moments CASH is KING. Certificate was just a piece of paper with valuation only. If the value goes up then it would means everything but if the value goes down ......... it just a paper to keep only.

3 comments:

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malaysia tour packages said...

be aware of current trend as it can affect to a bit extent for our result.

Contrarian Investor said...

The time to invest is when everyone is really scared and shares are dirt cheap.