Malaysian-Shares Blogspot

Happy Chinese New Year 2012.

2012-01-22T12:01:00.000+08:00

Gong Xi Fa Cai

FBM KLCI Consolidating For Chinese New Year Holiday?

2012-01-17T02:15:00.001+08:00

Happy New Year to all my readers. Sorry for not posting for quite sometimes due to my work load. Looking at yesterday share market momentum, we can notice that the current share market movement was a bit tired. If we check most of the share prices, we can see most of the counters which have been moving since last December 2011 until now are now moving down and making lower low from their previous low due to some profit taking or maybe ahead of Chinese New Year holidays.

Could we still have any chances for a pre-Chinese New Year rally? I'm doubt about it. Based on the chart reading we might be facing some consolidation move ahead of this CNY holidays but still we can see some rotational play among the penny stocks. Good and blue chips stock were not showing any more interest at these moments. Maybe after this Chinese New Year celebration.

Right now we still can see some of shares are moving especially any mother shares which was listed with any call-warrant listed together. These are the most potential play at this moment. There were so many shares which is listed with call-warrant are moving very fast with certain counters have the ability to achieve 30 to 60 percent premium on profit.

Those who dares to play the call-warrant will sure laugh all the way to the bank recently. But one thing we must remember that not all call-warrants are good play and indeed those who want to play must do some homework before decide to invest or speculate for any of these call-warrants. If we are not careful enough or if we are too greedy, we might fall into a big hole.

Looking at the FBM-KLCI movement at this moment, 1,500 points would stand as mild support at these moments but if the FBM-KLCI break this level than the next support level would be at 1,450 points. Current share market momentum still look nice and stable but we need to look at the overall world equities markets to guide us on the current sentiment.

Quiet Trading Ahead Of Christmas Celebration ???

2011-12-14T10:20:00.001+08:00

It is quite unpredictable how our share market moves lately. No doubt we are seeing some changes in the way our share market react to the world equities movement. Sometimes when we expecting the share market is moving lower and all the sudden they move up quite drastically but still the share market didn't show any positive sign yet. A sign that would promise more comfortable trading. Based on the chart sign, we still need more time to monitor the whole share market movement but according to individual chart, most of them still trading poorly. The FBM-KLCI must not break their recently low of 1,424 points or else it might turn very ugly.

Today is already 14th December 2011, we have another 11 days before we celebrate Christmas. Basically towards the year end, the share market will be a bit quiet. They might be moving sidelines before the year of 2012 arrive. During this period it would advisable to search for any counter that have the ability to move. The accumulation must be done during or before the arrival of Chinese New Year rally. Would there be a rally???? Or there might be a rally for the up coming 13th General Election??? We will not know whether there would be a rally coming in or not during this festival time but a closer attention towards the share market movement is very important or else we might miss the trading opportunity ahead.

On the Dow Jones Industrial Average movement, right at these moments it didn't materialise based on the chart reading. We are expecting it to trade lower based on the chart reading and the on going financial crisis in the European region but due to some positive news, the index move up and show more strength by standing around 12,000 points. At these moments I would watch very closely on how the world equities indexes are performing. Any level of support that will be broken will be treat as an alarm for us to trade carefully.

DownTrend Coming In ? Cautious Trade Ahead !!!

2011-11-24T07:30:00.000+08:00

As we can see right now, the Malaysian shares market are coming down. Based on the chart wise, we might be experiencing some new waves of downside. If we check most of the overall counters, we can see most of the counters are coming down quite hard recently, especially the Blue Chips counters. Was it a new beginning of a new downtrend?

Based from the previous calculation of the charts, the Dow Jones Industrial Average is facing lot of difficulties with the European debts problem still lingering the whole world equities market. This time around it might turn out to be from bad to worst than ever before. It is still early to put this kind of assumption towards current share market movement but it seems it was never an ending story from the European country with lots of debts problem keep on arising from their neighboring country.

With the current sentiments moving downwards, it would be advisable to stay away from the share market trading. It is not a good time to trade with. Current share market sentiments shows more weakening side rather than more promising signal to move upwards. From my previous last blog, I did mention we need to be more careful in the month of December because it might turn out to be the worst month for all of us or maybe the worst has already started.

This assumption was based on few of my previous chart where by I used it to compare what has happen during the 2007 - 2008 financial crisis in the Dow Jones industrial Average. Currently the share market might be moving 20 cents down before rebound 10 cents up and again coming down another 15 cents with 7 cents up. Each day we might be experiencing more downside rather than upside.

It seems the Bears have just wake up from their SLEEPing.

Current Share Market Sentiments Still Looks Nice. Be Careful In The Month Of December!

2011-11-09T08:30:00.003+08:00

These few weeks I was caught off guard the way our share market movement. I didn't expect that the share market can perform so well. This time I really admit that I didn't pay much of the attention on the current share market movement. I admit my mistake. Maybe I was paying too much attention on the downside and I have missed the opportunity to trade during this highly volatile movement.

Looking at the current share market movement, we need to put more attention towards the overall world equities market movement. Right now, based on their charts movement I will still put my self in a position of self protection. Basically I will pay more attention towards the month of December. Based on the calculation, any major turnaround will depends on the month of December. I won't say it will happen or it might happen. It was just based on the chart reading.

What would happen in the month of December ? There might be a major downside going on the Dow Jones Industrial Average. We cannot assume that it is going to happen but we can take a look on it and have a glimpse on it. This is just a chart reading only and it is only a guide for us. How far and whether it will happen or not????? Nobody knows. It is just that they look more or less the same pattern. Just be careful whenever we trade. For sure maybe my earlier mistake was I put too much attention or depend too much on this chart pattern. That was my biggest mistake.

Selamat Hari Raya Haji

2011-11-06T11:49:00.001+08:00

"" SELAMAT HARI RAYA HAJI ""

"" Happy Deepavali ""

2011-10-25T23:00:00.001+08:00

"" Happy Deepavali ""

To All The Readers

Malaysian Shares Blogspot.

Remember Current Share Market Sentiments Still Downtrend!

2011-10-14T11:50:00.008+08:00

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.

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

2011-09-26T16:00:00.002+08:00

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.!!!

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

2011-09-13T11:11:00.002+08:00

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).

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

2011-09-08T08:15:00.006+08:00

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.

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

2011-09-02T00:30:00.007+08:00

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.

Selamat Hari Raya

2011-08-29T08:00:00.000+08:00

Selamat Hari Raya To All My Muslimin Friends.

Was It A Good Time To Accumulate ?????

2011-08-24T07:30:00.009+08:00

Was it a good time to buy now? That was the question my friends were asking. My advice to them is to stay out for a while because we don't have any clear indicator or signal that allow us to go in. At theses moments if we take a look on how the Dow Jones Industrial Average fares, they seem to be facing some uncertainties. Right now if we ever try to trade, it might be a short lived market so we might be facing more risk than reward (hope I was wrong).

Looking at the Dow Jones Industrial Average chart, we might be having some up and down market sentiments with the current trend showing a downtrend market. Any more sharp drop will be minimal in these few days toward end of August. My current assumption was based on the chart.

If we take a closer look, we might use previous data (happen in 2007) before the financial turmoil that happen in Aug 2008. The meltdown of sub-prime in America. It's all begin during the year of 2007. The chart that I have posted shows that there is a similarity in between the two big blue circles that I have posted on the chart. One happen in 2007 and another one in 2011.

We might take it as guidance for us in our future trade. We cannot assume that it might be following the same pattern but we need something to guide us in order to protect our investment. Basically we know that the Dow Jones Industrial Average is heading towards the downtrend, hence we need to be more careful and alert all the times. Any trade at these moments will be short lived (holding for short period) ...... from my point of views.

Any more sharp drop will be treat as an opportunity to accumulate and during the rebound periods we can unload any of the shares we accumulate. As I use to mention any accumulations will based on the right timing. Not every falls can create an opportunity.

Technical Rebound In The Process. When Will It End ????

2011-08-17T08:30:00.003+08:00

Technically the FBM-KLCI is in the technical rebound process and it is moving from their lows. Anyone who manage to accumulate during recently sell down will be able to make some handsome gains. The timing was very important and indeed last week was the perfect time to accumulate.

Basically using a technique "Catching A Falling Knife" would eventually comes with not only technical readings but also with the guts and believe that the share market will rebound from recently sell off. I don't know how to explain that senses (share market to rebound), many will disagrees with my senses but because of my 20 years of monitoring the share market movement, I just know that a rebound was just around the corner. I have been using this technique for quite sometime and every time it did brings great opportunity to trade and made some gains out from huge sell down.

At these moments I will consider any accumulation done right now was not the perfect timing. The share market might be experiencing some up and down and we can't really know where they are heading to. Chances of making some gains still there but with limited counters to choose from. Based on the chart maybe the FBM-KLCI might be moving towards 1,530 points before the index facing a big hurdle around those points. Still I will lay off for a while after recently technical rebound. We will have to wait for a clearer indicator appear before any decision can be made.

Technical Rebound Might Be Happening Soon ???

2011-08-12T00:15:00.008+08:00

Well yesterday share market performance was actually an opportunity to accumulate some of the shares at cheaper price. Based on yesterday sentiments the share market looks quite strong in their overall performance. No doubts the Dow Jones Industrial Average was down about -500 points, it didn't jeopardized the overall sentiments in the FBM-KLCI.

If we take a closer look on most of the counters traded during the opening session in the morning, most of the counters were down just a little bit only. It shows that the share market might make a turn around anytime soon. The selling pressure is getting lesser. Basically the timing of buying and accumulation was the last two days. It was a perfect moments. Accumulation should be done when the share market was weak. Buying on weakness would be the perfect way to accumulate.

Maybe it was about time that a rebound might be happening in these short terms. Who knows, anything can happen in this share market especially during this kind of uncertainties happened lately in world financial market. If the technical rebounds do take place, it might not be a long run. Just be careful whenever we trade during this uncertainty. This is just one of the my points of view and we cannot treat it as it might happen.

Might Be A Trend Reversal ? Time To Buy ?

2011-08-10T00:30:00.005+08:00

FBM-KLCI still close around it strongest supporting level of 1,476.00 points. Basically if we examine the chart and the trend, it seems that there might be an indication that the share market is in the process of turning into Trend Reversal.

It seems that yesterday transaction was the turning points that the few days of decline in most of the good quality stock might turn into gains for this coming few days.

Indicator like Japanese Candlestick suggests that the trend reversal is happening. How sure we are on this indicator signal, it would depends on how the world equities market react but most of the time they are always 70 percent to 80 percent accurate.

These two days market transaction we have to use a technique call ""Catching A Falling Knife"". It is not easy to learn but for those who can stand the pressure of it will eventually win this Battle. Basically I will rate this market as a one time opportunity and they seldom appear with sharp drops in few months to come. It might happen again but when was it ???

It is just my points of views and we cannot assume that this article can be treated as accurate. It is just some of my knowledge that I have gather for so many years and I just want to share it with my readers.

Market Crash !!! Can This Level 1,476 Points Hold On For FBM-KLCI ???

2011-08-08T12:45:00.002+08:00

It is quite difficult to determine whether this level 1,476 will hold on for the FBM-KLCI as the selling pressure looks quite intensify.

If we take a look on the share market movement today, it was a MARKET CRASH. At these moments monitoring the high quality counters would be the best option. Chances of making some profit from this downturn might arise because most of the good quality counters move down sharply.

I will treat this timing as CATCHING A FALLING KNIFE. "" TIMING "" is very important to determine how good our skill is or how good our profit will be. Just be careful ..... a slight wrong timing would eventually make us lose our chances of making any opportunity arises. Remember "" TIMING "" play a very important role to make a gain from the share market.

World Equities Looks Very Unstable !!! Stay At Sideline !!!

2011-08-05T01:35:00.004+08:00

The Dow Jones Industrial Average seems to be moving into a new territory of unpleasant moments for most of the investors around the world with the index have fallen around 1,100 points. Was it an opportunity to buy any shares right now??? Maybe for the U.S equities market but not our Malaysian share market. Right at these moments our share market behaved quite unpredictable with more potential of losing money rather than gaining anything from any trade.

We might make some trading profit from one or two counters we have spotted but we can't stand from the losses that might occur just from one counter alone. Sometimes with only one counter it can wipe out the whole profit that we make and sometimes we even have to pay out more than we gain.

Our share market looks quite dull but because there was on going rumour saying that this year General Election that would probably be held before end of the year. Maybe that is the reason why our share market still look so strong in terms of the price and index movements.

If we check on the recently charts on FBM-KLCI, the index already breaks its strong supporting level. Basically it will looks not nice as the FBM-KLCI have broken that level. The next level of FBM-KLCI might be moving is toward the 1,515.00 points from current 1,547.00 point.

At these moments any trading opportunities arise from current sharp falls will be treat as an opportunity to buy at cheaper price. From my points of views, current sentiment was not a good time to trade. Stay out from the current sentiment would be the best option.

Selamat Berpuasa To All Muslimin Friends.

2011-08-01T12:21:00.001+08:00

Selamat Berpuasa Kepada Kawan Kawan Yang Berugama Islam.

Still Not Easy To Trade With Current Sentiments?

2011-07-24T00:30:00.004+08:00

It has been two weeks since my last posting. Currently looking at the share market performance, we have nothing to cheer about. It kind of mix market with the chances to make some gains seems to be very slim with some uncertainties surrounding the world equities market.

Looking at the current chart, the FBM-KLCI still stay above the supporting lines. It seems that the share market might be moving side way. If the supporting lines is not taken out, we might have some chances to play around the market but with limited counter to choose from.

What will I do at these moments? With the current volume and turnover still well below 1,000,000 (excluded Bumi Armada), I still prefer to watch and have a look on how our share market is going to move. Participating in the current share market sentiments didn't promise any good opportunities rather with chances to lose more of our investments. I'm staying at the side line.

Lately we can see lots of new IPOs listing and it seems that most of the new listing are doing well. Today we will be watching how Hibiscus Petroleum Berhad is going to fare and whether this counter can bring any profit to its investor? With 1 free warrant for 1 ordinary share held, there might be some chances that this counter could bring some gains to its investor.

Hibiscus Petroleum Berhad - To Apply or Not To Apply?

2011-07-08T13:25:00.009+08:00

Hibiscus Petroleum Bhd, the first Special Purpose Acquisition Company (SPAC) to be listed in Main Market on 25th July 2011. This is something quite new in the Malaysian share market. If we really examine and we surf few of the blogger involve in share market, most of them responded saying that they are not going to apply this share. The main reason was this company have NO BUSINESSES and it is an EMPTY SHELL company.

Basically if we sit down and examine the prospectus of this company, it seems that this company have the ability to move higher on the ground that it will involve in an OIL and GAS exploration and production (E&P) businesses. No doubt they don't have any businesses at all at this moment but the team management inside it was well known for their ability and experience in oil and gas field.

Taking into the account of their Main Features of this IPO - certain things we need to look at it on why this share was worth of applying based on their few main features.

SPAC is a company which has no operations or income generating business at the point of IPO but undertakes an IPO with the intention of acquiring operating companies/businesses with the proceeds raised from the IPO.

The Initial Public Offering (IPO) consists of 200 to 400 million ordinary shares at an IPO price of RM0.75 per share at RM0.01 par value. It comes with 1 free detachable warrant for each share. 10 million shares are offered to Malaysian public.

The warrants will be listed and tradable from the date of listing, with an exercise price at a discount of approximately 33% to the issue price of RM0.75 per share. Upon the listing, Hibiscus Petroleum will work towards the acquisition of businesses or assets that would establish it as a junior independent oil and gas exploration and production (E&P) player in the near to medium term.

Hibiscus Petroleum does not intend to pay dividends prior to the completion of the Qualifying Acquisition (QA). The company has not generated any revenue since it has not commenced business operations.

Main features of this IPO?

1. Investor Protection – At least 90% of the IPO proceeds will be placed in a trust account managed by an independent custodian which is a trust company, a licensed bank or merchant bank. At least 90% IPO proceeds placed in a trust account - given it value at 0.75 sens X 90%, we still have a value of 0.675 sens place under trustee. The minimum proceeds of 90% will be placed with the independent custodian, Deutsche Trustees Malaysia Berhad which may only be invested in securities issued by the Malaysian Government, money market instruments and AAA-rated papers.

2. Shareholders who vote against a proposed Qualifying Acquisition (QA) are entitled to receive, in exchange for their securities, a pro rata portion of the amount held in trust account (being 90% of the IPO proceeds) if the QA is approved. Hence, the downside risk prior to Qualifying Acquisition (QA) is limited with the refund flexibility of 90% of an investor’s IPO subscription plus interest (net of distribution/liquidation expenses). The downside risk is limited with a refund of 90% plus interest - a good protection. If the Qualifying Acquisition approved by the share holders, we have the rights to ask for the refund if we are against it. It means that at least we will be still getting 90% of its initial value of 0.75 sens.

3. The downside risk may be further mitigated by the trading of warrants from the date of listing as this IPO comes with a sweeter of 1 free detachable warrant for each share. This is the best part of it - Free 1 detachable warrant. Exercise period - Anytime during the period commencing from and inclusive of the date of the completion of the QA up to and including the Expiry Date.

4. The warrants are tradable on listing date. Exercise price is 0.50 sens – a discount of 33% to the issue price of 0.75 sens. Taking into accounts - if the listing of Hibiscus share was below par around 90% (0.675 sens) from its initial value of 0.75 sens, the warrant will probably listed at around 0.25 to 0.35 sens a share - this was based on it exercise price of 0.50 sens plus a premium of about 0.10 to 0.15 sens a share for the warrant. (listing price 0.675 sens - exercise price(warrant) 0.50 sens = warrant share prices 0.175 sens + premium of 0.10 sens to 0.15 sens = probably listed around 0.25 to 0.35 sens a share.

5. The completion of the QA is within 3 years from the date of listing. If it fails to complete a QA within this time frame, the company will be liquidated and the amount held in trust account (net of taxes and liquidation expenses) will be distributed to shareholders. Refund flexibility : Investors will receive 90% of their funds with interest, (after deduction of relevant taxes and liquidation/distribution costs which are not expected to be substantial), if the SPAC fails to generate an acquisition within a 3 years period or if they vote against an approved qualifying acquisition. The Non-Independent Directors, Management and Initial investors are not entitled to any distribution. No other IPO structure limits investors’ initial downside in this manner.

Investment by Investor (per share) RM0.75
Minimum amount to be distributed (90%) RM0.67 *
Interest in Year 1 (3%) RM0.02
Total distribution – if at the end of Year 1 RM0.69
Interest in Year 2 (3%) RM0.02
Total distribution – if at the end of Year 2 RM0.71
Interest in Year 3 (3%) RM0.02
Total distribution – if at the end of Year 3 RM0.73

6. Opportunity to invest in a listed oil and gas Exploration & Production company at entry price. Under the SC guidelines, they are not allowed to talk to any vendors prior to being listed but after listing if there is some good announcements coming in the prices of this share will be totally different)

7. Board and Management team have extensive experience and relevant skills.
1) Former Shell Malaysia deputy chairman Zainul Rahim Mohd Zain is the non-independent non-executive chairman of Hibiscus Petroleum. He is also the Board Members of Petronas Carigali Sdn Bhd and Petronas Carigali Overseas Sdn. Bhd.
2) Former Sapura Crest Chief Operating Officer, Kenneth Gerard Pereira is the managing director. Pereira was in the Sapura group's oil and gas service business. He is also now the managing director of Mumbai-listed Interlink Petroleum Bhd, an independent oil and gas E&P company. He has 29 years of working experience of which 21 years have been in the oil and gas industry. Significant prior sector experience in the start-up and turn-around of companies engaged in the sector :- One of the founders of the oil and gas service business of the Sapura Group of companies in 1997, involved in the growing of the company organically and through acquisitions until 2008. Interlink Petroleum Ltd, a junior independent oil and gas E&P company listed on the Mumbai Stock Exchange. Under his stewardship, Interlink’s performance improved substantially, with a market capitalization increase from approximately USD3.7 million at the end of 2008 to USD35.5 million at the end of 2010.
3) Perisai Petroleum Teknologi Bhd’s managing director Zainol Izzet Mohamed Ishak who was former Sapura Crest Petroleum Bhd CEO also sits on Hibiscus Petroleum’s board. Held a CEO position for 16 years, out of which, 7 were in Malaysian public listed companies. Under his leadership, Sapura Crest became one of Malaysia’s leading oil and gas service provider.
4) Dr Rabi Bastia Padmashree (non Executive) - Involved in the oil and gas E&P industry for more than 30 years. Founder of the E&P business of Reliance Industries Limited, a member of the Reliance Group, India’s largest private sector enterprise. Credited with the successful exploration of India’s largest oil basins, many of them in deep water. Received several academic and state awards in India, the UK and the USA.

From my point of views. The risk is there but it would not be a great risk as most of the money invest are place in a trustee account and we have the rights not to proceed or to be a shareholder if the Qualifying Acquisition is approve and we are against it. At least we still receive 90% refund. Do remember we have another one sweetener - 1 free warrant for every ordinary share we hold in Hibiscus Petroleum Berhad. From here anything can happen with the warrant listing. Maybe it might move higher? There are few rumours stating that this share will be play once it listed in Bursa. How true is this story ????? No idea at all. Just make your own judgement.....

This statement was not an intention to ask or to persuade any of my readers to apply for this coming IPOs. It is just my point of views only.

"Sometimes when thing looks bad it turn out to be good or vice verse"

Star to Buy 4.99% of Catcha Media for RM4.97m

2011-07-05T01:30:00.002+08:00

Catcha Media Berhad (“Catcha Media”) announced today that leading Malaysian media company Star Publications (M) Bhd (“The Star”) will be acquiring a stake in Catcha Media, in conjunction with the latter’s ongoing Initial Public Offering (“IPO”) exercise. Catcha Media is scheduled to be listed on Bursa Malaysia’s ACE Market on 22nd July 2011.

Catcha Media aims to raise RM17.25 million from its Public Issue of 23,000,000 new ordinary shares, each at an issue price of RM0.75 where 3,000,000 shares have been offered to the Malaysian public, while 20,000,000 shares are for private placement.

As part of Catcha Media’s private placement exercise, The Star has subscribed for 6,636,000 shares at RM 0.75 per share. This stake will represent 4.99 percent of the enlarged issue and paid up capital of Catcha Media upon listing, which represents the maximum equity shareholding in Catcha Media that The Star could possibly subscribe to, given the structure of the IPO.

The Star, currently listed on Bursa Malaysia’s Main Board, is Malaysia’s leading integrated media organisation, with group revenues totalling more than RM1 billion for 2010. It publishes Malaysia’s leading English language newspapers ‘The Star’ and ‘The Sunday Star’, which boast a million readers on average daily. The Star also has controlling interests in several radio stations and online portals.

Patrick Grove, Director and Founder of Catcha Media commented, “We are very excited to welcome the Star as a shareholder of Catcha Media, as we anticipate that this investment will be in line with the strategic interests of both parties. We are already in discussions with The Star’s team to explore potential opportunities for business growth synergy. We also appreciate The Star’s confidence in our business and future prospects.”

Ho Kay Tat, Group Managing Director and CEO of The Star said, “The Star views this
acquistion as a strategic move to add value to its current portfolio of high-growth media assets. Catcha Media is a regional leader in online media and advertising sales. We anticipate that Internet Advertising Expenditure (“Adex”) in Malaysia and the region will grow by more than ten times over the next five years. With our current new media properties and brands, The Star is positioned to benefit from this change in the advertising landscape. Our investment in Catcha Media as a market leader will further strengthen our competitive edge in this sector.”

Catcha Media is presently a media owner and operator of a magazine publishing business and an online media business. The magazine publishing business currently publishes 14 magazine titles, while the online media business sells Internet advertising space to Malaysian brand owners and advertising agencies. Catcha Media also has exclusive sales rights for leading Malaysian website, Lowyat.net. In total, media properties controlled by Catcha Media currently reach 9.78 million Malaysians. Catcha Media’s revenue in 2010 was RM35.42 million and its profit after tax (PAT) was RM8.1 million.

Catcha Media management intends to use the majority of funds raised from their IPO exercise for working capital required for business growth and to fund the research and development of online technologies in line with the growth prospects of the Internet Adex space.

According to Frost & Sullivan, online Adex in Malaysia is expected to grow at a compound annual growth rate (CAGR) of 56.63% per year for the next five years. Frost & Sullivan also estimates that Catcha Media captured a 26.62% share of Malaysia’s online advertising market in 2010.

Moving forward, Catcha Media seeks to expand by way of acquiring more representation and sales rights for local and international online properties, while leveraging its magazine publishing business to grow its online media business.

Ho Kay Tat went on to comment, “We see in Catcha Media a group of managers who, like The Star, have demonstrated their long-term commitment to becoming leaders in their sector. They have more than twelve years experience in the online media sector and their vision for the business fits perfectly with ours.”

Catcha Media launched its IPO prospectus on 30 June 2011. Subscription for the public placement is open until 8 July 2011. Catcha Media is due to list its shares on Bursa Malaysia’s ACE Market on 22 July 2011. A copy of the prospectus relating to this offering may be obtained from Bursa Malaysia’s website (www.bursamalaysia.com) or Catcha Media’s website (www.catchamedia.com).

8 IPOs Listing In The Month Of July !

2011-07-01T11:15:00.002+08:00

The FBM-KLCI is creating an all time high but nothing to cheers about. The share market performance looks quite dull with the volume and turnover still at low. The only exciting thing happens right now in the month of July was flooded with full of IPOs application and listing.

Why everything being put together at one time? We totally disagree the way they handle this listing situation as everything being list together in two weeks span. It is unfair for the public in applying for the new IPOs listing as it would squeeze their fund and opportunities in participation in IPOs listing.

One thing for sure there will good and bad things happen. The good things are we might be easily get the subscription of the IPOs that we are applying as not many of them will apply in such a short time. The bad things are it will lower the rate for the oversubscription ratio. Which counters might face the same fate as UOA Development Berhad or XOX Berhad. Can we said that Eversendai Corporation Berhad facing the same fate as well?

This month of July IPOs application and expected listing date.

1) Eversendai Corporation Bhd 01/07/2011 (Listed) - RM 1.70
2) OldTown Berhad 13/07/2011 - RM 1.25
3) Inari Berhad 19/07/2011 - RM 0.38
4) Bumi Armada Berhad 21/07/2011 - RM 3.15
5) Catcha Media Berhad 22/07/2011 - RM 0.75
6) Hibiscus Petroleum Berhad 25/07/2011 - RM 0.75
7) PeterLabs Holdings Berhad 26/07/2011 - RM 0.30
8) Prestariang Berhad 27/07/2011 - RM 0.90

FBM-KLCI Sets To Make All Time High?

2011-06-29T01:45:00.010+08:00

The month of July is coming. How our FBM-KLCI fares right now? We can see most of the counters traded still at their low. Lately we seem to have an experience of a roller coaster ride in our share market with few counters like KNM, MAS, MUHIBAH, MAA, TIMEdotCOM tumbling to their lowest.

Basically it is not good for our share market as this kind of situation will dampen current share market sentiment even deeper. Looking at the charts of the FBM-KLCI, we can foresee that the FBM-KLCI still stand very strong and it is likely the FBM-KLCI will create a new high anytime from now. We are just having a different of about 5 to 10 points to break all time high of 1,576.95 set on 6th January 2011.

It seems that our Prime Minister Datuk Seri Najib Razak is doing a great job in handling the current Malaysian share market sentiments especially the FBM-KLCI index. Checking on some of the few counters movement and based on yesterday MSM Holdings Berhad listing, the market sentiment looks improving. Maybe next one or two weeks we might have some movement in our share market. So it would be better to look out for our favorite counters as well (going for speculations). We might have some opportunity to make some.

It seems that the Bulls are starting to make a come back with FBM-KLCI showing more signal to make a new high. Will it be a Big Bull coming back or just a small cow hanging around the farm? Time will tell (still hoping for the total turnover or volume done to achieve above 1 billion mark everyday).

The XOX Berhad Saga. What Has Gone Wrong - Part 2.

2011-06-24T07:00:00.005+08:00

My previous post we were mentioning about the new listing IPO of XOX Berhad. Here are the latest development and information we have received. We went to meet our friends and try to get some information from them. How they end up in taking up such a huge quantity of shares in their hands.

The group of our friends that taking up the placement of XOX Berhad were paying RM0.75 per share. They were taking up a total of 3,000,000 millions ordinary shares of XOX Berhad. That was a huge amount of shares they have taken up. From the information we received, the shares were place out by one of the owner or one of the directors of the company (we don't know how true this information as we were just listen to their explanation).

The reason they taking up the shares so much because it was being offer at a discounted price of RM0.05 per share at the price of RM0.75 per share instead of paying up at RM0.80 per share. During that time they didn't expect they can incurred such a huge losses as they think the most worst scenario they can face at that time was; if the shares is list at the opening price of RM0.80 per share (Initial Public Offering), still they managed to survive because of the advantages of the discounted price.

Total initial placement was 6,000,000 millions shares with the 3,000,000 millions shares were place to my friends. All the 3,000,000 millions shares were divided among their friends. On the listing day they able to sold off their shares in losses (about 2,000,000 millions shares) with about another 1,000,000 shares still left in their hands. Total losses was nearly about RM350,000.00 to RM450,000.00.

Our friends also did argue before the listing exercise, they heard some of the shares were place out at RM0.70 per share and some even at RM0.68 per share. We were quite exciting listening to the story but we can't guarantee the other side of the story whether there is really a placement of RM0.68 per share or RM0.70 per share being place out.

As we can see from the story that we received, it seems there was a fault play being done or been arrange before the listing and after the listing. It seems that XOX Berhad listing exercise was just an exercise to teach us in future that we are having a very bad corporate image on our Bursa Malaysia and in future if we ever come across another discounted situation, we must be well alert.

Let us take this as a lesson to improve and to enhance our knowledge and to learn how our Malaysian share market is? We can't blame that some of the IPOs exercise sometimes didn't guarantee any return but the way the XOX Berhad listing exercise was arrange was totally a surprised for all of us. We are hoping that this matter would not happen again if our governments agencies that involves in preparing or approved the listing exercise and the Investment Bank who do the private placement do take care the public interest. Not just concentrating on making money all the times.

IPOs Recently Debut. What Has Went Wrong on XOX Berhad?

2011-06-20T09:00:00.011+08:00

Lately we are seeing some few new IPO counters are facing some problem or difficulties when they went for listed recently. The demand or their performance was under performing especially the UOA Development Berhad. The public issue was offer at RM2.52 and the institutional prices were offer at RM2.60 but on the day it was listed, the share prices were opened at RM2.60 per share. This is something quiet shocking to many of the new investors who have just invested in this share through IPO and they are seeing some losses on their listing day until today.

That goes with XOX Berhad recently listing when we saw their share prices open at discounted IPO price on their first day opening and the prices tumble 35% until closing. The IPO prices were offer at RM0.80 to the public but was listed at the opening RM0.73 before it closed at RM0.52 on that day. It seems that the trends of new listings are not doing well on their debut. Maybe this is due to our recently Malaysian share market dull performance.

Basically we didn't blame if those two shares were listed and were traded below their IPO prices (willing buyer willing seller basis) but one thing for sure we have an issue to argue on the recently listing of XOX Berhad. Recently before the listing of XOX Berhad, one of the Investment Bank did offer us to take up the shares of this company.

Before the shares were being offer or open to the public to apply, we were being offer to take up the XOX Berhad at the price of RM0.80 per share. The offers come from one of our friends and we have decided to take a portion of it. During that time we were just waiting for the time to make the payment to the Investment Bank.

Few days before they asking for the payments, we were surprised that the shares that they were offer was below their offer price. We were told that the XOX Berhad share is offering at RM0.75 per share. A discount of RM0.05 per share from the issue price of RM0.80. Another Investment Bank (one of the remisier) also did the same thing; offer us at discounted price of RM0.05 per share. We were so surprised that this share was being offer at discounted prices. We were so curious and we even make a few survey and we were told that previously before the listing exercise the shares were being offer at RM0.70 with huge block being place out to certain identified investors.

How true the shares that being offer and place out at RM0.70 per share? We are not quite sure about it as we don't have any prove to show it but one thing for sure the shares were being offer to us at RM0.75 per share. During that time we are still considering whether to take up the shares or not, until we found out about XOX Berhad financial reports. We withdraw the deals because we were quite uncomfortable with their discounted price and XOX Berhad financial reports but a group of our friends are taking that offers. We heard that they incurred huge losses on the listing date and even some of them are still holding some of shares until today.

The question is?

1) Was it right for the Investment bank or anyone who have involved in this deal to make such an offer at discounted prices before being offer to the public to apply? It is unfair to the public.

2) Why the offer of the XOX Berhad was being offer at discounted price? Could it be a technique or some strategies from the Investment Bank to dispose the shares as soon as possible? By using this method, they would be able to unload all their shares for private placement even faster outside the market.

3) Could it be the existing major shareholders (who are laughing all the way now) given such a discounted price from the approval offer price of RM0.80 per share outside the share market before the listing exercise completed?

4) Why the Securities Commission (SC) able to approved such a listing in the first place? Was it because of their associated company or maybe their big supporter was Celcom Axiata Berhad?

Please refer to this website for more comments on XOX Berhad. http://whereiszemoola.blogspot.com/search/label/XOX

Because of such an unhealthy practice, the new IPO application are facing some new dilemma whether it would be a trend that such a new trend of new listing would not doing well when they were listed. From our point of views if these matters never really being taking care off or being watch closely in the future, it would be unfair to most of the investors who are looking for an opportunity instead they were being cheated for applying an irresponsible act from one of the listed company recently.

It is just like cheating public's money. Right now we have to monitor whether XOX Berhad have the abilities to perform based on their statement given by its CEO that stated the company WILL turn around and post a net profit of 19.8 million in 2011 after it had post a Loss of 13.1 million in 2009 and a HIGHER Loss of 16 million in 2010.

Lousy Performance In The Month Of June. World Equities Market Unstable.

2011-06-16T21:35:00.002+08:00

The world equities market seems to be going down lately. Our Malaysian share market performance (FBM-KLCI) still standing quite well but there are so many counters didn't perform quite well but some of the good counters are moving higher. Its kind of mixed market with more downside rather than upside.

Based on the chart wise the FBM-KLCI still look stable and are moving side way but overall we are having a lousy market momentum and sentiments. It seems that if we really invested our money right now we are facing more chances of losing rather than profiting. With the share market turnover still stand at low (below 1 billion shares), staying out from the share market would be the best option at these moments as we can't find any good fundamental or news to push the share market higher.

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Here are some of the latest news that we can share together (Info from Jesper Lee-CIMB)

Paulson's Advantage Plus fund off 20 pct this year.

For John Paulson, June may be one for the record books -- in the most unwanted way -- as one his largest funds lost 13 percent in the first two weeks. The billionaire hedge fund manager, who made his fortune on a short bet against sub prime mortgages, ironically is being crushed after a short seller issued a critical report on a Chinese forest company he owns shares in.

Paulson's Advantage Plus fund, one of the $38 billion firm's largest, has tumbled nearly 20 percent this year after losing 13 percent in the first two weeks of June. Part of the decline is attributed to shares of Sino-Forest Corp (TRE.TO) which plunged 82.50 percent this month, an investor in the fund who is not permitted to discuss performance publicly said.

In early June Carson Block, founder of investment firm Muddy Waters Research, called Sino-Forest a "pump and dump" scheme and accused it of committing fraud. Paulson's spokesman could not be reached for comment.

In some respects, the sharp drop off in June, following a 6 percent drop in May, is not surprising given both the decline in Sino-Forest and an ongoing drop in the banking stocks Paulson also owns.

The bulk of Paulson's assets are in the Advantage and Advantage Plus funds but he also offers other portfolios, including a gold fund, which are performing better. But the 20 percent decline is stunning nonetheless for a manager who is widely revered for his calls on the economy.

But the timing of the drop comes at an especially awkward time, only days after Paulson met with hundreds of his investors in Paris at a festive mid-year review.

At workshops and during in-depth information sessions held amid cocktail parties and an elegant river cruise, the hedge fund manager told his clients that the economic recovery is not as strong as he would like to be, investors who attended the meeting said. The weakest spot -- the U.S. housing market, he said.

While Paulson's investors saw a drop in performance early in 2010 as well, they were later comforted when he rallied late in the year to pull out another winner.

This year, however, the eye-popping loss might be giving some investors reason to pause especially as deadlines to withdraw their money come up, people familiar with investors' thinking said. In fact, Paulson stayed on in Europe after a meeting in Paris to try and raise more money. He traveled to Geneva where he met with investors, a person familiar with his travels said.

Who Is John Paulson ?

John Paulson is the most successful hedge fund manager in history because he is pretty much always right in his predictions. He’s the world’s 45th richest man and is worth approximately $12 billion. His fund, Paulson and Co., is the third largest hedge fund in the world with $32 billion of assets under management.

He made some of the best trades of all time, shorting the sub prime credit markets in 2007 and 2008. Not only was he dead on with the prediction of the crisis, but he also made great execution of the trades. He and his partners constructed complex portfolios of the instruments they believed would be worst-hit, rather than just shorting an index.

Mr Paulson had a take home pay of $3.7 billion in 2007, considered the richest bounty in Wall Street history. Then, after he made all that money from the financial crisis, he started covering his short positions and started a “Recovery Fund” in early 2009, pretty much exactly the right time.

In August of 2009 he began buying financial stocks including Goldman Sachs and Bank of America. Because of his recent successes, a flood of investing capital has been added to his fund in the last two years. Since early 2010, Paulson has had over 100% of his funds invested in the market. He’s oscillated between 150% and 107% fully invested. The market has done him well this year.

On November 2009, he started a gold fund. This is because he believes the US and other countries are devaluing their currency and with all the money being put into the economy, inflation is bound to happen. Although it went down 14% in January, 2010, its first month of operations, it has rallied back and is up double digits this year.

Not A Good Time To Play In The Month Of June ?

2011-06-02T13:20:00.004+08:00

The month of June has started. As we can see until today our share market still didn't show any sign of improvement especially the the second liners and the third liners counters. No doubt we can enjoy the rally on the FBM-KLCI index movement (just by looking at it) still we can see there lots of counters moving down bit by bit and even created new low.

The blue chips still maintain very well with some of them even move higher to support the index. Basically if we dump or invest our money inside the current share market sentiment right now, we would be eventually inviting the GOD of LOSSES to look for us.

At these moments staying out from the share market would be the best option to take rather than we are too greedy to play or to invest it everyday because the bandwagons are heading downward. It is not easy to strike or to invest on the right counters unless we are really sure there is something going on or there is a news on that counter.

The turnover done for the Malaysian share market still consider very low at these moments and the sentiment still looks very dull with MAS and KNM having a big fall recently. The world equities market started to show some weakening sign. We need to have more positive news in order to push the sentiments moving upwards but basically based on previous historical data, the month of June never really bring any excitement things to the share market.

FBM-KLCI Reaching The Month of JUNE. Up or Down ?

2011-05-25T10:20:00.003+08:00

It has been a while as we can see there was nothing much we can do about this share market performance. The turnover and the volumes were not there. It is a quiet share market at all and it is not a good share market to trade with.

Next week we will be seeing the month of June coming in. Can we expect that the Malaysian share market to move higher? I'm doubt about it as we can see there was nothing major news or changes that will enhance the share market movement.

FBM-KLCI is currently moving towards side way with the world equities started to show some weaknesses ahead. We have to be careful during this coming month of June. No doubt we cannot assume it will be a bad month for the equities market, yet we have to be on alert all the time. Basically June was not a good month for Malaysian equities market but because there were so many new giant IPO's coming in especially UOA Development, MSM Malaysia Holdings and Bumi Armada, there are chances that the share market will sustain its present trend (moving side way).

FBM-KLCI Moving Side Way But Prices Are Heading Down Bit By Bit?

2011-04-29T12:40:00.004+08:00

Looking at current Malaysian share market right now, it seems that the sentiment is so quiet. Last week there were few indicators showing some good sign but right now it didn't seems quite well. The share market turnover or volume done didn't quite impressive at all.

No doubt the FBM-KLCI still looks nice and standing quite well but the sentiments was dull. Need more time to see where our market is heading to. At these moments watching from the side line would be the best option because I didn't expect the share market sentiments was so quiet after recently huge movement since the beginning of Japanese Earth Quake until now.

The month of May will arrive next week. It is very important to monitor how our share market are going to perform. Right now it seems there was no leader at all to lead and to guide the current sentiments. We will have to wait and see. The Bears seem to be coming out from the sleep.

FBM-KLCI Moving Up Or Moving Down ?

2011-04-26T07:00:00.002+08:00

Looking at the share market condition right now, the turnover or the volume done was not impressive enough to push the market. In order for the Malaysian share market to push higher, turnover or the volume done must achieve around 2 billion shares a day.

Basically it seems that most of the counters are moving side way with few started to move a bit higher. Sentiment was not bad with the momentum still show some potential to move higher. At these moments it might be boring watching where our favorite counters tend to move. They seem to be playing around up and down in a small range (2 to 4 bits only).

It is important to watch and search whether there would be a market leader to bring and to lead the current dull sentiments. With the 13th General Election still playing around, putting some attention towards the Government link share will eventually help the current sentiments and our income.

FBM-KLCI must stay above 1,520 points at these moments. If FBM-KLCI breaks that level and close below that level, we would have to evaluate again the whole situation. Let us wait and see whether the FBM-KLCI still can hold on above these levels.

Market Seems To Have More Potential To Move Higher ?

2011-04-22T07:00:00.005+08:00

Sarawak State Election has passes by but the FBM-KLCI reacted normally against the election results. Basically if we take a look on the Malaysian share market movement, we can assume that our share market right now are moving side way. It would be better for the FMB-KLCI if the turnover can reach towards 2 billion shares a day.

If we take a closer look we might have some opportunity ahead. What does it means that we might have some opportunity ahead? If we dare to accumulate right now (not every counter) we might have a chance to look for an upper trend ahead. How big is the trend? That one I don't have the answer but my outlook was based on some indicators appears recently this week.

It was based on some few speculation counters showing some indication of moving upwards but how strong they can move forward will depend on the overall sentiments. Overall world equities market are faring very well especially the Dow Jones Industrial Average. With the current Dow Jones momentum at these moments, it might help the current local share market sentiment as well.

This is just my assumption and my point of view and we cannot take it as it will happen in the first place (moving up) but for sure the month of May is nearing and we have to stay alert all the time. Based on previous record, basically in the month of May (maybe middle or end of the month) was not a good time for the share market. This is just an assumption only.

Another advice from my point of view. If we did accumulate any of the shares and all the sudden there was an announcement of 13th General Election, my suggestion is to unload all those shares that we brought for speculations.

Looking at the chart right now, we can foresee that the FBM-KLCI is staying around in between 1,520 points and 1,543 points. If the FBM-KLCI still manages to stay above 1,520 points, we still more rooms to move on. If the 1,520 points being taken out, then we have to re-adjust our point of view.

The Bulls Are Coming Back?

2011-04-11T07:00:00.001+08:00

The Malaysian share market still looks very strong. We are having rotational movement among the speculation counters with some good counters also moving to help and push the FBM-KLCI higher. Since the Japanese earthquake crisis until now, indeed the Bulls are coming back to take over the Bears.

Seeing at the chart, the FBM-KLCI might have the ability to break the recently new high of 1,576.95 points set on 06/01/2011. At these moments the FBM-KLCI might be hovering around before move even higher. We can see that the turnover or the volume done for the FBM-KLCI is improving and this really help the whole share market sentiments.

Any correction will be treat as an opportunity to accumulate. From my point of view the FBM-KLCI might stand strong until the end of this month. In the coming month of May it is hard to tell. Usually when the month of May arrive the share market won't perform very well. Either middle of May or at the end of May. This is just a statement and we cannot take it that it will happen when the time has arrived.

The most important element right now we must monitor whether the FBM-KLCI is able to cross their all time high. Able to do so will bring the BIG BULLS charging back. The Dow Jones Industrial Average right now is hovering around their previously high and it is important to watch them whether they are able to penetrate their recently high of 12,390 points set in month of February 2011. If the index is hovering around and move backward then we must see how the FBM-KLCI will act on it.

With the Sarawak state election atmosphere surrounding around the Malaysian share market, we must be well prepare on the upcoming results from the Sarawak state election. Anything can goes wrong on the Sarawak state election. If the Barisan Nasional lose, it will bring very big effect to our share market.

FBM-KLCI Touching Their Strongest Resistance Level!

2011-03-30T10:55:00.001+08:00

Since the announcement of intervention from the G7 group to help Japan, the Asian equities market are showing sign of improvement. The G7 group, whose members include the United States and the UK, joined the Bank of Japan in stepping into the currency markets to curb the soaring yen. This really help to stabilize the regional Asian equities market.

In the local front the announcement of Sarawak State Election also help our share market to boost a little. Looking at most of the counters, we can see most of the speculation counters are moving. The FBM-KLCI is moving towards their strong resistance level of 1,529 points. Able to penetrate and cross over that resistance with strong volume would confirm our share market is moving upwards.

At these moments the FBM-KLCI is touching their strongest resistance level. It is a good time to go in? Since the FBM-KLCI is touching their strongest resistance level, it is good for us to monitor current market sentiment and movement before any decision can be made. Usually it is not advisable to accumulate if the FBM-KLCI is facing their strongest resistance level.

An Opportunity Arise From Japan EarthQuake?

2011-03-17T00:10:00.002+08:00

An Earthquake + Tsunami + Nuclear Crisis. These were the concern at these moments and the main concern was the Nuclear Crisis. It was an unfortunate thing to happen to the people of Japan. My condolences to all the people of Japan who has lost their loves one. Anyway life needs to move forward after this tragedy.

Was there an opportunity arise from recently sell off on our Malaysian share market? Definitely it was an opportunity but when was it? From yesterday transaction we can assume that the sell off was done quite heavily but if we take a look on their prices, still we cannot assume that the prices were cheap enough for us to went in. A small rebound has occurred but how long can it sustain?

Based on the FBM-KLCI chart, we can see that the FBM-KLCI is moving side way in between 1,480 points to 1,529 points. Strong support still seen at 1,480 points. If this point been taken out drastically, we can assume that the Malaysian share market might be heading to the South. It would create another downtrend market in the process.

The world equities market still looks unstable after recently sell off. Based on their charts reading, it seems that they are heading to the South. This is not a good sign. With the current sentiment is still unclear, it is advisable to stay out for a while. At these moments the opportunity to make some income will be lesser if we want to compare the losses that we might be facing.

The Bears are getting stronger and stronger at these moments and the Bulls cannot be seen anywhere. With the nuclear crisis in Japan still looks very unclear, it is advisable to wait and look for any opportunity that might arise from this crisis.

Recently comments from The European Union's energy commissioner warned that "possible catastrophic events" in Japan could be seen in the next few hours. “The site is effectively out of control,” Energy Commissioner Guenther Oettinger told a European Parliament committee. “In coming hours there could be further catastrophic events which could pose a threat to the lives of people on the island.”

FBM-KLCI Looks Much More Better. Can The Index Move Higher?

2011-03-07T08:00:00.002+08:00

Last Friday the FBM-KLCI performs very well. The index was up +15.73 points to close at 1,522.61 points. Still the FBM-KLCI needs to penetrate the strong resistance level of 1,529 points. Able to do will show more positive sign for the Malaysian share market.

Based on technical indicators the MACD is showing sign of accumulation at this moment but the indicator is still well below the neutral zone (negative zone). Beside the MACD, others indicators are showing some improving sign.

Monitoring the share market movement right now will be the right timing to do as we can see most of the shares were at low. It might be an accumulation time but the best timing to accumulate is to wait for any opportunity arise (accumulate when the share market was weak or in the correction mode). Just be careful when choosing a right counter.

Right now our share market is in the process of technical rebound (going up). Most of the counters that were gone down for the last few days have shot up nicely since last Thursday and Friday. Volume and turnover still not promising yet, the Bulls might be still resting. Any how watch the share market movement closely this month, there might be some opportunity arises in the coming month.

TIMING Play An Important Role To Determine Our Profit Potential

2011-03-02T11:05:00.003+08:00

Since my last article until now, there have been no changes that we have to accept that the Bears are controlling the share market at these moments. As we can see for the past two weeks the Malaysian share market was controlling by the Bears. The Bears were just too great and too strong for the Bulls to come out from the hiding.

From my point of view, staying out from this share market for a while will be the best strategies as there is no indication that our share market is going to get better. It might become even worst but if we take a look what is really happen around the world equities sentiment right now. With the crude Oil prices reaches $100 per barrel and the share market volumes or the transactions are getting lesser and lesser, it is not a healthy market to trade with.

Basically based on these few days transaction, a technical rebound might occur around this week or next week provided that these few days the share market still heading towards the South Pole but this time around the technical rebound won't be easy to be trade. As usual choosing a right counter will determine our profit margin.

Looks for any counters that are experiencing sharp falls since last two weeks. These counters might have the big potential to add and to bring more profit into our pockets. One thing for sure TIMING plays an important role to determine the whole market sentiments. Catching the right counter but not at the right timing will definitely trim our profit potential.

At these moments we must concentrate in monitoring the share market movement and the sentiment. Any panic selling will be treat as an opportunity to grab at the lower prices. I would assume that at these moments we are playing "Catching A Falling Knife". If we are not careful enough, we might have a big cut in our hand and it might affect our confidence as well.

The Bears Are Taking Over The Share Market?

2011-02-11T12:15:00.003+08:00

Wow, indeed yesterday was tremendous day in our share market. I didn't expect that it will fall so drastically. The FBM-KLCI went down -32.08 points to close at 1,503.99 points. If we take a look on how the share market traded yesterday, it seems that our journeys with the Bulls have just ended.

At these moments we must be well prepare for any bad outcome from the share market. It will not be a good market at all as we can see that the FBM-KLCI break the 1,529 points supporting level.

With this level being broken, the share market might move further down to 1,480 points level. If this level being taken out, it will be a bad sign for the Malaysian share market.

Right now I will lay off myself from the share market as the share market has already hurt from yesterday falls. It will not be an easy market to trade right now. We have to be more careful. Any accumulation of shares will not guarantee any return because the Bulls already went to hide and the Bears are taking over the share market.

The Bulls And The Bears Are Fighting Each Other.

2011-02-09T10:50:00.003+08:00

Looking at the overall share market momentum, they tend to be more selling after recently the share market has adjusted their technical rebound. No doubt for the last two days the volume and the turnover looks very good with total transaction for each day increase to more than 3 billions shares traded still it didn't means that it was a good sign.

One thing for sure whenever most of the third liners start to move drastically after the share market recently run up from the beginning of January until now, our Malaysian share market will take a pause. They need to digest a bit after recently huge turnover and volume done but we must always remember that whenever most of the third liners start to move that is the sign that our share market is already end their journey to move forward.

Again I hope this statement was wrong because I'm expecting the share market to consolidate rather than going down bit by bit. It will be a mix market with the Bulls and the Bears are fighting each other right now. Who will win? We will see how our share market is going to digest recently turnover.

Basically in the month of March would be a good month for the share market. The atmosphere of General Election is getting around the corner with our Prime Minister still the key person to decide when the General Election would be held. There was a talk about it but it always turnout to be rumors only.

World equities market especially the Dow Jones Industrial Average still looks very strong with their index creating new high and new high again. Yesterday gain of +71.52 points (12,233 points) pushed the Dow’s daily winning streak to its longest in nearly seven months. Maybe there will be some profit taking in the process for the Dow Jones Industrial Average these coming few days.

FBM-KLCI Might Be Consolidating ?????

2011-02-07T06:00:00.005+08:00

Basically and technically the technical rebound has happened. Not only it happens last week but it seems that it might be continuing for this week with the world equities market showing more promising sign. I'm able to make some handsome gains during this technical rebound. Not much but good enough for my Chinese New Year Ang Pow.

The FBM-KLCI managed to crawl back to their safest zone. I was hoping that this level will maintain as their strong support. In the month of February how our share market will fare?

Basically after Chinese New Year the share market might not performing that well. It will be a mix market. This was based on previous historical data. We still have lots of opportunity if we really concentrate on certain counters. I hope I was wrong in giving this statement. No matter what is going to happen next, we have to trade it carefully.

Choosing a right counter will determine our margin of profit. With Petronas still have lots of news to announce, any counter related to oil and gas company will have more opportunity to rise further. Based on the chart wise, the FBM-KLCI just make a recovery from recently sharp falls and it might need some times to digest this coming week. How far will it go? We will never know as the FBM KLCI still trying to heel from the recently wound. Maybe a consolidation move .....

Gong Xi Fa Chai

2011-02-01T00:00:00.000+08:00

May The Year Of Rabbit

Bring More Happiness To All The Investors

Quiet Market Ahead Of Chinese New Year Celebration.

2011-01-24T10:15:00.002+08:00

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.

All Time High For The FBM-KLCI, The Bulls Are Charging!

2011-01-04T18:30:00.003+08:00

NEW HIGH AGAIN. Walah... today transaction and the turnover achieved more than 2 billion. I have been looking forward all this while for quite sometimes. This is the best ever turnover until today. We have never seen it before for quite sometimes already.

With this kind of sentiment, it is easily that whoever accumulated these shares since last week would have laughing all the way to their bank. It might not be that much but at least they can gain something out of it. Anyone who hold towards coming Chinese New Year would have the opportunity to make more.

Basically the momentum of our current share market will sustain until one week before Chinese New Year arrived. These assumption was based on historical data. With higher turnover done provided that the turnover still can sustain for these few days, we can assume that the BULLS are coming back.

This might be the best opportunity we have at these moments. With the FBM-KLCI up +18.47 points to close at 1,551.89 points, these would be the best BATTLE for us to win a WAR.

Good Sign, Bulls Are Coming Back ?

2011-01-04T00:30:00.001+08:00

HAPPY NEW YEAR 2011

Well, the year of 2011 start with a BANG. Anyone who has accumulated during the month of December 2010 would have been rewarded from yesterday share market momentum. The turnover and the volume done also look quite impressive.

It seems that the sentiment is getting bullish and bullish from now on. More effort is needed in order to monitor closely the whole market sentiment as anytime from now on, BULLS can be appear all the sudden.

I liked yesterday sentiment as it shows more promising sign after being consolidated for almost a month since December 2010. For the FBM-KLCI, we are entering NEW HIGH, a level never seen before. This is truly something very new for us to cheer about. Start your engine now, this might be the best bandwagon that we are going to ride on.

How long these momentum will sustain? Well, we will have to monitor it to determine how long these momentum will sustain. There will be signal appear when the time has arrive. So enjoy it now while you still have the chances to strike a jackpot.

** Watch the Stock Broking Shares **

Merry Christmas

2010-12-25T02:04:00.001+08:00

Merry Christmas

To All My Readers

Momentum Getting Better And Better. Turnover Still Low.

2010-12-14T13:55:00.000+08:00

We are already entering almost half month of December and we can see more promising activity happening in our share market especially some good environment surrounding the Malaysian equity market. Not every counter is moving but it might time for us to accumulate based on their recent activity.

Another 11 days before we celebrate Merry Christmas. Will the share market perform during these two weeks? It might be a quiet market ahead because of holiday but sometimes it is also quite hard to predict. From my point of view I would rather accumulate bit by bit unless we have some good news for our favourite counters.

Based on the chart wise, the FBM-KLCI didn't look that nice. According to the candlestick reading, it appears that there was a long black candlestick. This is not a good sign but we cannot take it as a bad omen that the share market has ended its move. Maybe the FBM-KLCI is still consolidating, waiting for an opportunity to appear.

December Month - An Accumulation Month ???

2010-12-08T08:00:00.001+08:00

FBM-KLCI still looks strong, volume and turnover is not improving. Some of the counters are creating new low, some even try to sustain at their very best level. Can we still trade at these moments ????? Looking at the sentiment right now, the Malaysian share market shows more improving momentum.

Although the sentiment is improving, as usual choosing a right counter would play an important role to determine whether we can really make some gains out of it. At these moments not every counter can moved like we use to see it in the month of October and November. The sentiment was dull at these moments and if we are not careful enough we might get burn as well.

Based on past historical data for the FBM-KLCI, the month of December always a quiet month and a consolidation month. Usually during this time around it is an opportunity to accumulate and wait for the right timing to happen (for the share market to move up). Basically the share market will only really move after New Year has arrived.

This was based on historical data but we cannot always based or rely on that data. Sometimes the share market can behave differently and anything can happen during this few weeks. From my point of view this month would be an accumulative month. We must have some patients and keep our eyes open all the time in order to monitor the share market movement.

*** Can It Be Head and Shoulder Formation ??? *** Watch the chart.

FBM-KLCI Still In The Safe Zone ????

2010-11-25T11:30:00.001+08:00

Well, it seems that the whole world equities market have ended their journey to the North poles. Recent activities around the world equities market are telling us that the correction is in the process. As we can see for the past two weeks the world equities market playing an important role to determine how the FBM-KLCI next course.

At these moments we can see that the FBM-KLCI have just started to move down (breaking the 1,500 points supporting level) and during this correction, an opportunity will arise. TECHNICAL REBOUND. How long our share market will hold? As long as the FBM-KLCI still can stand above 1,470 points and above, I would consider that the FBM-KLCI still in the safe zone but one thing that I dislike is the turnover over the FBM-KLCI have drop to about 1 billion shares a day. Prefer if can sustain at 1.5 billion shares and above would be great for the market.

Maybe it was consolidating. Trying to adjust its momentum towards the bad news that surrounding the Korean region and European financial problems. Basically there is no indicator that will tell us when the correction will over. So stay on until our FBM-KLCI show more promising sign provided that the world equities market still can coup up with any bad news that will occur.

Are The Bulls For The FBM-KLCI Is Resting ?

2010-11-15T08:00:00.000+08:00

For the last two days the FBM-KLCI down about 35 points before recover back and lost about 24 points. It is quite obvious that the FBM-KLCI is going through a correction. At these moments will our share market heading further to the south ?????

No doubt the index might have some pullback due to some external sentiments (ie. china inflation fears), they tend to create more opportunity to buy at cheapest rate. For those who have lost their opportunity to trade recently, this would be the best time to bargain at lower price.

From my point of views, I don't think so that our share market will just ended their momentum at current level. From the overall performance our share market seems to have enough energy to go even higher. Candlestick indicator still looks not good enough. We must be careful all the time because any major reversal towards the world equities market, we might have the same impact as well.

Right now we still have enough opportunity to trade until there is an indicator or any major bad news that will overpower the uptrend. If the total volume or the turnover still stands about 1.4 billion to 1.8 billion a day, we need to put more attention on the stock broking company.

Hope for the best.

FBM-KLCI Must Maintain At 1,500 Points And Above?

2010-11-12T00:15:00.004+08:00

Well it seems that our share market is heading for some small correction yesterday. Still if we look at the overall sentiment, the Malaysian share market still looks healthier. Some of the counters are moving up and some of them are consolidating.

Basically if we take a look at the charts of the FBM-KLCI at these moments, we are having bad Candlestick reading. Not a good sign but yet it still didn't pose any great danger.

Last week and this week we are having lots of chances and opportunity to play and to choose some selective counter. The sentiment was great but still we need to be sharp in monitoring the share market movement all the time. Right now the FBM-KLCI might be hovering or consolidate around 1,500 - 1530 points.

Usually whenever the index reaches its previous all time high, they need to take a break in order for the index to adjust either to move higher or to move lower. 1,500 points will be the first support for the FBM-KLCI. This support must stand in order for the FBM-KLCI to continue its uptrend movement.

Daily turnover or volume must increase to about 2 billion shares a day in order for the sentiment to create greater bulls. With the turnover maintain at 1.3 billion to 1.6 billion a day, it is still not enough to bring the whole sentiment to become super Bull Run.

Dow Jones Industrial Average needs to stay at 11,200 points and above in order for the bulls to survive or else it would poise some difficulty or a great danger to the world equity markets.

Dow Jones Fighting Its Strongest Resistance Level?

2010-10-28T00:30:00.000+08:00

Dow Jones Industrial Average has reaches it strongest resistance level of 11,200 points. This time around it is very important to monitor their movement.

Based on the chart indicators it seems that few of the indicators are showing some sign of divergence movement. For me this is not a good sign and we have to be a bit alert. Right now we can assume that the double top was in the making. If the Dow Jones Industrial Average can break their strongest resistance level, it will be a good sign.

How about the FBM-KLCI doing right now? Basically our share market looks quite strong and sometimes no matter how bad the Dow Jones performance is, the FBM-KLCI still managed to show some darling performance. At these moment if we still can make some profit out of this market but for me the volume or the turnover done still not up to my expectation of achieving 2 billions shares per day.

Most of the index link counters are not moving any where right now. Many of them are just hovering around. No doubt we are seeing some new high created every week for the FBM-KLCI but we can see that it is not an easy market to play with. For those who choose to play contra, they will face lots of difficulty because as we can see that many speculation counters are moving rotationally. Most of the time they are moving sector by sector (i.e finance, plantation, oil & gas, etc)

Playing contra will not generate more income because sometimes we win and sometimes we can lose also. Picking up shares will be a good idea to consider at these moments. Remember : any big changes from the Dow Jones will indicate that our technique of trade in Malaysian share market will have to change also (if the Dow Jones having a sharp falls)

Dow Jones Is Reaching Near Their Strongest Resistance At 11,200 Points.

2010-10-14T12:40:00.003+08:00

Well ..... the Malaysian share market (second and third liners) finally make its move this week. Overall the sentiment is getting better and better with the National budget announcement just around the corner. The second and the third liners are showing more progress as well with the blue chips shares are in the mode of consolidating.

Turnover or the volume done still looks not big enough. I was looking at around 2 billion shares traded for a day. With the big turnover done, we might have a big Bull Run around the corner. At these moments there isn't any major negative news might occur but a precautions measure needs to be implement towards the Dow Jones Industrial Average.

No doubt the Dow Jones Industrial Average looks very nice but their index is reaching near their strongest hurdle or resistance at 11,200 points. If the Dow Jones manage to cross over that level with huge turnover done then we might have Bullish sentiment around the world equities market. This might help the Malaysian share market to move and break the New All Time High of 1,524.69 points set in 14th January 2008.

If the Dow cannot break that level of 11,200 points then we have to use a different approach to trade with this share market. Hopefully the Dow Jones didn't create a Double Top as there are few indicators showing weakening sign. To cancel that weakening sign the Dow Jones must move higher and higher.

Market Total Turnover Still Not Enough. Lack Of Interest ??????

2010-10-04T11:24:00.008+08:00

Well as we can see the Malaysian share market still looks very strong. Even though the index or the FBM-KLCI has consolidated, we still can see the overall share market sentiment still not in a bullish note yet. As long as the FBM-KLCI can stay above 1,441 points, we still have more opportunity to trade. A break from this level, we would have to reconsider our trading method.

VOLUME or the TURNOVER for the overall share market need to be increase in order for the whole sentiments to pick up what has been left out when the FBM-KLCI power up their move for the past few weeks back. With the total volume and the turnover done right now, it shows that our share market was lack of interest from most of the players.

A Billion turnover or volume done still didn't picture that the Malaysian share market was a good market to trade with. We might make some gains out of it but the gains were minimal. For those who manage to hold on to their shares, they are the one who can really make the profit out of it but remember, not every counter is moving up.

If we look closely, some of the counters still moving downtrend even though our FBM-KLCI is moving upwards - the technology stocks were moving against the trend (uptrend). Choosing a right counter will still poised a very important element to survive.

At this moment I like UEMLAND and MRCB as they have the potential to become our new leader in order to bring the whole sentiment and turn the whole share market sentiment into a bullish environment.

Volume Must Build Up. Potential Lying Ahead For Speculation Counters?

2010-09-22T12:45:00.001+08:00

Still the same old story. Since my last posting, everything still remains the same. Nothing much to talk about as we can see the FBM-KLCI still looks very strong. Volume and turnover have done still remain the same through out the period. Around 800 million to 1.1 billion shares traded.

With this kind of low volume, we need to wait for the volume to build up, then only we will have more chances to trade the speculation counters. Today (22.09.20100) the turnover for half day reaches about 790 million and it is a good sign. If the turnover can reaches about 2 billion a day, it would be great. Then only we might have a pure BULL RUN.

If we check it deeply, it seems that there are so many counters started to show more positive sign. I don't know whether the time has arrived but from my monitoring, it seems that we will more opportunity lying ahead. The volume or the turnover is getting better and better. Most of the speculation counters are showing more potential to move higher.

I won't be surprised maybe this time around some may even laugh all the way to the bank because there are still many potential counters didn't make their move yet. Please pay an extra attention and watch the whole momentum this week, we might have large bandwagon waiting for us and the bandwagon are heading to the North. Hope for the BEST ................ Happy Trading ............

FBM-KLCI Move Like Bullet Trains. Nothing Can STOP Them.

2010-09-13T11:55:00.004+08:00

This is something I have never seen before. From my past experience I saw before how the FBM-KLCI move in tandem with all the movement made by individual counters (second and third liners). Most of them are moving accordingly with the FBM-KLCI movement. But if we check their movement right now, we are seeing the movement only just concentrate on the index link counters and some blue chips counters.

I was wondering whether will there be a day where by when the FBM-KLCI stop its movement and hovering on its top, most of the second and the third liners will started to move by themselves? Hoping for them to start their engine and run by itself is just a hope only. What we can do right now is to search some potential counters, if we lucky enough then we would be able to make some gains. Remember, not every counter will move.

If we check the strength of the FBM-KLCI at these moments, it seems that there is no bad news and nothing can stop the index from reaching their highest point of all time high at 1,524.69 points set on 14/01/2008. We might have a chance to see a new high in the process for the FBM-KLCI.

Same Old Story - FBM-KLCI At New High. Sentiments Still Not Good.

2010-09-01T02:00:00.004+08:00

We are entering in the month of September. As we can see the world equities market are showing more sign of weakening for the last two weeks but it didn't happen to our Malaysia FBM-KLCI. The FBM-KLCI index shoots up to close at new high and become the Big Boss around the Asian region. How it happen ?????? I don't what really happen to our government policies right now. Maybe the fund managers might have some of tips from the government ......

Frankly I didn't find it very interesting or having any temptation or feeling of buying shares right now because we might be heading for a time bomb that is tickling waiting for it to be exploded. I will change my mind if the overall sentiments move accordingly.

Looking at the whole sentiment, the momentum is not right at all. The blue chips or the index link counters are been push up but the overall shares performance didn't follow the sentiment at all.

Turnover done for daily transaction shows that it is still well below the 1 billion shares. No volume to support the big run. It seems that we might be having an artificial market fundamental because we are not following most of the world equities performance. Maybe our Prime Minister, Datuk Seri Najib Tun Razak has something special inside his mind that he try to make our share market looks good before another election being called?

A check on the Dow Jones Industrial Average performance, their share market now is entering into a correction mode. Most of the world equities markets are tracking the DJIA performance right now. As long their index can stay above the 9,900 points then it will not post any great danger.

Recently when I was searching for some articles and I found out that there is still some analysts mention that the DJIA is performing a Head and Shoulder pattern but it is still early to make this kind of call. Whether this pattern will happen or not, we still need more time to monitor the performance of the DJIA. My call at these moments, I will stay out for a while because I don't know how to catch this funny and interesting Luxury Band Wagon or the index link counters that are heading to the North.

FBM-KLCI Create New High, Speculation Counters Cannot Perform?

2010-08-20T08:00:00.002+08:00

Walah .... the FBM-KLCI hit new high. A high that most of us didn't anticipate that it would happen with the total overall turnover done just around 1 billion shares traded. Usually when a new high was in the making, most of the second and the third liners will move accordingly.

What we can see from here, it didn't happen in our Malaysian share market. The sentiment didn't show that we are in the Bull run. Frankly I really don't know why our share market behaves like this and I also don't like the way our Malaysian share market movement (pushing most of the blue chips up) because when our share market make a U-turn .... for sure we will have to bear some losses.

Currently we can see some inconsistent move by most of the speculation counters. There are no significant leaders that can emerge and guide most of the speculation counters to move higher. Looking at chart, most of the speculation counters are moving sideways. At these moments we just have to wait for miracle thing to happen.

Can The FBM-KLCI Continuing Their Uptrend Journey?

2010-08-16T07:55:00.002+08:00

FBM-KLCI did something fantastic on last Friday trading. Based on the candlestick pattern the FBM-KLCI turn into a bit bullish. Yet ... in order for the FBM-KLCI to confirm their continuation uptrend, the index have to cross their previous high of 1,370 points.

Strong supporting level still stands at 1,348 points. A breach of this point will bring the share market to move further lower to find another support. Can the FBM-KLCI still manage to continue their journey?

One thing for sure, no doubt we are seeing some positive sign with the FBM-KLCI still have the ability to stay at high but not every counter is moving accordingly. Only certain sectors are moving and for those who really playing for speculation (no contra), they are the one who can really making some return.

With the Dow Jones Industrial Average went into a correction mode right now, we have to be careful whenever we want to choose good counters to play with. Hopefully the pullback from the DJIA was not that bad, maybe just a profit taking after recently huge run-up. The next supporting level for the DJIA now standing at 10,100 points.

FBM-KLCI Might Be Consolidate In Near Terms?

2010-08-11T10:00:00.006+08:00

It has been a while if we really examine the share market movement, how many of us can really make some gains from the share market. Is not an easy share market to play with although we can see the FBM-KLCI still stand at high level. For those who really watch the movement everyday, they are the one who can really make some. Searching for the right counters still play an important element as we can see not every counter is moving.

As we can see this is not a bull run in the making. Looking at the FBM-KLCI right now, the index is now moving side way and if we take a closer look on the FBM-KLCI, the index show more negative sign. Sign of weakening because there were so many black candlesticks appear around these last few trading days.

In terms of Candlestick study, more blacker candlesticks appear shows that the share market maybe consolidate at these moments. How the share market likely to fare this coming week? From my point of view if we take a look on how the individual counter fares these few days, my suggestion would be stay out for a while because the momentum right now shows more weakening sign rather than showing more opportunity lying ahead.

Strong Support At 1,348 Points For FBM-KLCI.

2010-07-30T10:50:00.001+08:00

It has been a week and we can notice that this is not an easy market to play along. For those who always followed the share market movement, they would have an opportunity to make some profit.

No doubts our share market performance is going up bit by bit with the FBM-KLCI creating new high but overall performance still didn't confirm that a bull market is coming. For me it is not an easy market to trade with. Patients will play an important role to determine whether we can will these battles.

Total turnover done these few days still consider on average. Looking at the charts, 1,348 points would be considered as their main strong support. A breach of this level will bring the share market momentum to a pause.

From my point of view our share market performance still need to reconsider how the Dow Jones Industrial Average performance as the DJIA still didn't post any positive sign that their trend is turning to an uptrend. We need few more days in order to exam where the DJIA current trend is heading to.

FBM-KLCI At New High. Still Have More Rooms To Move On?

2010-07-26T20:38:00.013+08:00

It has been a while I didn't post any article on Malaysian share market. For the past two weeks, I have been monitoring the performance on the Malaysian share market and I would like to share it with my readers. Looking at current Malaysian equity market, most of them perform quite nicely and some even climb to make a new high.

The FBM-KLCI major resistance of 1,348 points was easily crossover without any hurdle with a bit of volume to support the current movement. The FBM-KLCI now closed at 1,351.82 points, just a diferent of about 2 points from previous high of 1,349.92 points set in 04/05/2010.

I don't know how strong the FBM-KLCI is going to be but it seems that current sentiment suggested that the FBM-KLCI still have some potential to move higher but at this point, the FBM-KLCI might take a pause or to readjust their current running after hitting new high.

At these moments I won't call it that the Malaysian share market is in the Bull Run because current sentiment still suggested that there was not many speculation players inside and the current environment also suggested that it was not an easy market to make some return.

We can make some profit but we must know how to choose the right counters in order to make some return. Searching for a right counter need lots of attention and patient because not every counters are moving. Don't forget to watch how the Dow Jones Industrial Average movement because the DJIA still play an important role to determine the world equities market performance.

Death Cross For Dow Jones Industrial Average. Becareful.

2010-07-15T10:00:00.005+08:00

2010 FIFA World Cup South Africa has ended. Now it is the best time to pour our attention towards the Malaysia equity market. How our Malaysia share market fare lately? It seems that there are so many counters started to move bit by bit but how strong our share market will move in tandem with the Dow Jones Industrial Average?

At these moments, I'm still quiet queerest whether we are really moving up according to the fundamentals? As they use to said, when the World Cup has ended, the share market would start to move higher. Can we use this statement?

Basically according to overall charts suggested that the FBM-KLCI was moving higher and higher but not every counters were moving accordingly with the index. Total turnover done for the Malaysia share market also stands at low. Right now we cannot assume that this is a Bull Run in the making.

No doubt we are seeing some healthy sign ahead, choosing a right and perfect counter would determine our gains. Again I would like to cautious everyone about the Dow Jones Industrial Average movement. Right now we can see that the DJIA is performing quite well but based on some few analysts projection, we are facing quite a dangerous situation. How bad is that situation? (bear in mind it will takes times for this thing to happen - downtrend) Please read this article to gain more knowledge about the DEATH CROSS. An Analysis of the Death Cross Sell Signal.

Technical analysis, a Death Cross occurs when the 50-day moving average of an index, or stock, moves below its 200-day moving average (50-day moving average meet or cross the 200-day moving average). It may sound complex, but what a cross means is that recent average price of stocks has fallen below its long-term average.

Dow Jones Industrial Average Forming Head And Shoulder ???

2010-07-07T00:15:00.005+08:00

Looking at the Malaysian share market performance right now, it seems that we are moving side way with no new interesting news occur. Basically they always move this way during the on going world cup fewer. To judge how the overall Malaysian share market performance, we have to study the U.S equity market first.

If we take a look on the Dow Jones Industrial Average (DJIA) movement at this moment, things don't look quite positive if we study their chart.

Since the previous high of 11,200 points (set in end of April), the DJIA is experiencing some downturn and yesterday the index climb higher after down for few days already. Can we consider if there is some opportunity ahead in the world equities markets? At these moments I'm still doubt about it whether there is still an opportunity lying ahead. We just have to watch how the DJIA is going to fare these few days.

Looking at the DJIA chart, can you find any HEAD and SHOULDER in the making ????? I don't know whether they are forming the Head and Shoulder pattern. But if the formation was really a Head and Shoulder then it would be a very bad indicator for the overall world equities markets. We just have to be EXTRA careful on this matter. Head and Shoulder formation on the top is very very BEARISH indicator !!!

Quiet Market Ahead For The World Equities Market ????

2010-06-30T08:00:00.003+08:00

Dow Jones Industrial Average is not doing well at this moment. Malaysia share market is not moving anywhere also. Shanghai Stock Exchange drop sharply yesterday -4.3%. Current sentiment is telling us that we still have to wait for more stability in the overall world equities market.

With the Dow Jones Industrial Average showing more weaknesses rather than healthier sign, we should be staying out for a while and watch how our share market is going to react against current situation.

With the on going 2010 FIFA World Cup South Africa, sentiment still looks a bit quiet with most of the share market player still pay more attention towards this world prestigious football. Everyone is talking about football but less people are talking about share market.

Right now I don't have any comments towards the FBM-KLCI movement because I didn't foreseen any interesting indicator that will lead the share market to move higher but if we take a look for the past 2 to 3 weeks share market movement, we can notice that the share market has been moving up for quiet some time. Maybe it is time for them to take a pause .....

Thursday's Sell-Off: Bad News for Bulls - Dow Jones Industrial Average

2010-06-26T01:41:00.004+08:00

After some constructive base building the last couple of weeks, the market failed an important test at its 50 day moving average. Unfortunately the market also failed at its 50 day moving averages back in mid May, setting up a test of the February lows. Since that rebuff, all three of the major indices have fallen below their 200 day moving averages, signaling a change in control from the bulls back to the bears.

It is a widely held notion that previous support becomes resistance. Last week the 200 day moving averages acted as a floor for the markets. Now it is likely that those averages will act as a ceiling that will be difficult for the markets to go above.

Obviously the 50 day moving averages have been impenetrable the last couple of months as well. Last Monday’s price action, when the bulls failed to seize the opportunity to rise above their 50 day moving averages on the heels of the most positive news of the month, raised the warning flags.

Both technical and fundamental analysis demonstrates a market rally that is broken and the odds now favor another retest of the S&P 1040 level. With the 50 day moving in the direction of forming a death cross under the 200 day moving average on all the major indices, it is quite possible that the markets will decline back down to 1040 and 2139 for the S&P and NASDAQ respectively. Should those levels be breached, a plunge down to 875 – 950 on the S&P witnessed last June and July, will most likely be targeted.

With the price of gold touching an all time high of $1260 per ounce in the past week, it is another of those flashing red lights that says all is not well with our economy. There is much discussion whether this price rise is signaling inflation or that global fiat currencies are collapsing, or perhaps a combination of both events. It must be stated that the price of gold has quadrupled over the past ten years, while the S&P 500 has remained basically flat.

Recall that one is just metal removed from the earth and the other is a reflection of the aggregate value of the largest 500 companies (employers) in America. This has created one of the most difficult investment environments witnessed in several generations.

Much of the economic data recently has been negative. The housing and mortgage figures appear to be predicting another leg down for real estate. The jobs picture is not improving either. This is not an environment where one should expect to be able to buy and hold. While I remain long term optimistic, in the short run there are too many obstacles that could result in a significant price decline to ignore. We remain in a short term complicated trading environment for now.

Article from Seeking Alpha

1,300 Points Still Stand As The Main Support For FBM-KLCI.

2010-06-23T11:20:00.000+08:00

Waalahhh ...... the world equities market are moving higher and higher. I was in China for about a week and I don't have the opportunity to monitor the overall Malaysian share market movement.

Looking at recently huge movement, I was wondering whether the Malaysian share market was able to penetrate their strongest resistance level at 1,350 points. At these moments we might see some profit taking activities after recently upwards movement.

Overall volume or turnover done still didn't support that the bulls are coming but the good thing is the FBM-KLCI was able to stay above the 1,300 points. As long as this level was not broken then we might have some opportunity to search for any good counters to invest.

Can The Dow Jones Industrial Average Move Higher ?

2010-06-14T07:30:00.001+08:00

The World Cup has just started. Just a very good weekend to watch some of these good games. At these moments the World Cup games is going on now, can we start to accumulate right now or stay at the sideline? For me I will prefer another week or two to determine whether it is a good time to go in or not.

Well let us see how our share market will fares this week? Basically if we take a look on the condition of the share market right now, they seem to be moving quite fairly. Move up bit by bit but lack of volumes to support their movement.

Looking at the FBM-KLCI, the index is touching at their resistance level, so we have to take a look on how the index is going to move this week. Whether they can move higher or make a consolidation move, it is important to monitor the index closely?

Without the volume to support the overall market turnover, we need more time to watch and to determine whether the share market can really sustain their movement right now? Judging from the overall performance of the world equities market movement, they look a bit stable but the European region financial crisis still far from over.

We have to be careful all the time. Lately there is an article who outline a few reasons why the Dow could charge higher and once again approach the level where the Dow started out 2010 (click to read). Whether this statement can be use as a guidance for us to trade, we have to judge it accordingly. For overall world equities performance, I still prefer the Dow Jones Industrial Average to perform in order for the share market to move higher.

++ Will not be around - went to China on 13th June ++

Accumulate During World Cup Games Going On????

2010-06-10T10:25:00.001+08:00

2010 FIFA World Cup South Africa is going to start tomorrow. I think we will be very busy watching Live World Cup matches every night. The games will run for a month but the world equities market might be experiencing some quite movement ahead. Maybe some consolidation moves.

Based on previous historical data - Sell Before World Cup Start, Accumulate During The World Cup Games Going On and Hold After The World Cup End. Can we use this statement to determine whether there would be an opportunity? We have judge it nicely. For me I have no idea at all ......

Basically we have to look on the overall basis on what had happened to the world equities market right now. Was it stable enough for us to go in? At these moments it is quite hard to determine whether it was a right time to accumulate when the World Cup started.

Financial crisis in the European region still look shaky. If we are not careful enough, we might get burn as well. For the FBM-KLCI movement, I don't have any comments on it because their movements didn't really picture the whole sentiments.

Malaysia Flag Was Raising Half Pole And Upside Down?

2010-06-07T20:10:00.004+08:00

This is very bad. What has happened anyway? This picture was taken on 5th June, 2010 during the Birthday of Seri Paduka Baginda Yang Di-Pertuan Agong. What a shocking!!!

As we can see the flag was raise at half pole only and it was upside down. Being a collation of the Selangor state government (Pakatan Rakyat), it is an unacceptable way to respect our country.

As a service center for a town called "Pandamaran" putting up a flag upside down is showing that they didn't respect their country at all. As a representative and a Adun or Yang Berhormat he should have taken notice on that matters. This is embarrassing.

I still can remember when there was a blogger by the name of KICKdeFELLA. He was been jailed for few days for putting up the Malaysian flag upside down. He spent 4 days and 3 nights inside the jail.

Why was he being jailed ??? Here are some of his article that appear in his blog.

Nation In Distress (Article appear on August 2008)

Dear proud Malaysians,

No way we are going to raise the white flag, which is the symbol of surrender. We are raising our flag upside down because it is a sign of our nation is in distress.

It is not UMNO or BN who are in distress. UMNO is as bubbly as ever doing what ever their leaders know best for the country and BN as happy as ever playing supporting role to those UMNO leaders.

It is not the opposition parties who are in distress, they never been in a better state than they are now, governing five states and denying a two-third majority for BN in the Dewan Rakyat for the first time.

But it is the nation who is in distress. We are facing economic uncertainty and the citizens are facing all sorts of difficulties facing it. We are losing our competitive edge and we are losing our territories too.

It is sad to see our beloved Jalur Gemilang, the symbol of our Nation and its sovereignty flying upside down. I had anticipated the anger by my fellow countrymen watching our flag being raised upside down. It is internationally accepted that raising the flag upside down is a mark of state of distress. It is never a mark of disrespect.

I hope we can sway all the anger into trying to turn the situation so we can see our Jalur Gemilang flying high in the right way again.

But until we can do something about it, the reality is, our nation is in disarray. Let us not live in hypocrisy. Let us stare at the upside down Jalur Gemilang and let the reality strike us once and for all. If we do not join hand in hand in trying to make the politicians understand how we feel then how on earth can we blame them for saying they are doing what they think is best for us and the nation.

I do not ask you to take your protest to the street, I do not ask you to let your frustration kills the nation, I do not ask you to unleash you anger so it can burn down any chance of unification. But I beg you not to wait until we have to raise the white flag for our survival.

"Biar Putih Tulang, Jangan Putih Mata”.

Again I repeat, if you have a reason to disagree with the manner the country is heading, then you have a cause.

Raise your flag upside down and let those who can make the different know that this nation is indeed in distress.

However, you may not have the reason to listen to me, so why not you listen to what other fellow Malaysian has to say,

Hungary - Second Wave Of Financial Crisis Have Just Started ?

2010-06-07T00:40:00.003+08:00

Last Friday the Dow Jones Industrial Average tumbles -323.31 points to close at 9,931.97 points. Looking at the performance of the Dow Jones Industrial Average, it looks quite dangerous at these moments. With the on going financial crisis already hitting the European region and all the sudden Hungary also facing the same crisis, well it seems that the second wave has just begun.

Last week, fears that the debt crisis could migrate to central Europe were stirred Friday after a senior Hungarian government official said the previous government had manipulated budget figures and lied about the state of the economy.

Hungary is among the countries in Eastern Europe hardest hit by the international financial crisis. In late 2008 it was forced to approach the International Monetary Fund for $25 billion in emergency financing

Well what really happens in Hungary was a domino effect around that region. If this statement by one of its senior Hungarian government official was true, the domino effect will keep on continue towards other country.

With this kind of situation, what should we do right now? Just monitor how the European equities and the DJIA performance. They are going to decide how the global equities market going to perform.

This week should be a week for us to cool down and relax. Watch 2010 FIFA World Cup South Africa and monitor how our Malaysian shares market reaction towards the world equities performance. Right now I have no comments on our Malaysian share market performance as we all can see last week was a technical rebound. Selling on the run was a right decision after all. This week we will monitor the momentum of the FBM-KLCI.

Right now I will be waiting for any opportunity arises. In a downtrend market you tend to lose more rather you can win a lot. So keeping more bullets is much more better as we can shoot anytime when the opportunity arise.

Anyway just watch this video clip to make our self relax and I will guarantee you that you will laugh all the way ......... but ....sorry it was in Malay languages. The title of this video clip called " DUIT KECIL ". Any comments on this video clip .... please give a comment ....

Any More Rooms For FBM-KLCI To Move Towards South Pole?

2010-06-02T17:10:00.002+08:00

Looking at current condition right now, where our Malaysian share market is heading right now? Frankly from this stage I have no idea where the share market is going to head to? If we take a look on the chart, we still have more rooms to head further to the South. How far the South Pole will be? I think it is better for us to be a trend follower rather than become a trend predictor.

When the bandwagon is coming down from the hill, we just have to follow. The whole scenario and the momentum at these moments didn't favour us at all. If we take a look on the FBM-KLCI chart: since March 2009 when the index touches the low of 836.51 points and climb all the way to create new high at 1,349.92 points in the early May, our index has gone up about 513.41 point (has gone up about 14 months).

At 1,280 points, our index just down about -65 points from its previous high. Can we consider that the FBM-KLCI has already finished its correction? We just have to wait and see how the FMB-KLCI is going to makes its move. World equities market still looks unstable and it is still not safe to make any wise decision to hold or to speculate at these moments.

Selling On The Run. Quiet Market Ahead?

2010-05-29T18:15:00.012+08:00

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).

Catching A Falling Knife?

2010-05-26T11:30:00.005+08:00

Yesterday the Malaysian share market experiencing some heavy selling with the FBM-KLCI down another -23 points. This time I was not around to watch how they drop because I was in Pulau Redang, Terengganu but basically I like the way its drop because with this kind of drop we have more chances to look for more opportunity around the corner (technical rebound).

Yesterday and today movement I would rate it as CATCHING A FALLING KNIFE. Those who dare to catch a falling knife would eventually make some but it would be quite hard to choose which counters?

Why it is a good time? FBM-KLCI has dropped nearly -100 points from its previous high and share market don't always go down all the time, they must climb up a bit. For the last few days our market has drop quite hard with most of the counters recorded double digit losses.

Whether today evening or tomorrow, we might see more green ahead but I don't know whether it will happen or not? It is just that the share market need to make some adjustment (going up) before the next wave coming in. I'm just sharing what is in my mind and we cannot take it as it will happen. I might be wrong. We have to decide and to make our own decision whether today is the right timing to do so (accumulate for technical rebound).

Technical Rebound Around The Corner?

2010-05-24T08:55:00.004+08:00

To be frank looking at the performance of the Dow Jones Industrial Average, I would expect that the DJIA might have started the downtrend move. How long the downtrend would be? Sometimes a downtrend can go for few week or maybe for few month. Right now I don't have any answer for it because during a downtrend being perform it is hardly to determine and to understand where the index are heading to.

Looking at the share prices right now and the overall last Friday closing (Malaysian share market), its looks a bit tempting as most of the share prices has come down and most of them are in oversold position.

I think this week we might have some technical rebounds but it won't be overall counters that are going to move up. It will be selective; counters which have experience some sharp falls recently.

FBM-KLCI has drop about -65 points from its previous high and we can expect some technical rebound ahead. When the index will climb? We have judge it by our monitoring. Any more sharp falls will be dealt as an opportunity to accumulate. RSI (Relative Strength Index) currently in oversold position.

To determine whether we still have some chances this coming weeks, it would depends on how the DJIA and the world equities market performance. Basically it is still not safe enough to invest or to speculate at these moments. Things still looks not safe enough or I can say we are being surrounding by lots of fire burning. Anytime we can get burn. If we are not careful enough, the burn will even hurt us until the bone.

FBM-KLCI Down -21.94 Points. An Opportunity?

2010-05-20T13:50:00.007+08:00

Well, well, well I didn’t expect that the FBM-KLCI to make a sharp fall yesterday. The FBM-KLCI was down -21.94 points to close at 1,308.23 points. All the while the index has been quite supportive, standing tall and we can’t even expect any major falls that would happen as the FBM-KLCI seems to be control by the government funds.

Yesterday they can’t even hold on that level any more. They need to respect the world equities market performance and their momentum. No matter how long or how strong we are the forces that beyond our control need to be released. The government should let the markets moves freely.

Yesterday we can see some panic selling and some sell down happen in our market. Now the question is? Can we buy right now for another technical rebound? When the technical rebound will happen? Can the share prices move down some more?

Basically looking at the world equities markets performance right now, it is quite dangerous to go in. Any technical rebound play would only be considered once we have some huge panic selling activities all over our share market. During that time we can only consider to speculate because the Reward or the Return will be greater than the Risk.

At these moments we might have some opportunities ahead with one or two counters but it is not easy to find one. I would prefer to hold more cash rather than going in (speculate counters) right now because the world equities market still not stablized yet. The European region still have lots of holes need to be cover up and to patch on.

PATIENTS WILL PLAY AN IMPORTANT ROLE TO DETERMINE WHETHER WE HAVE MORE BULLETS TO MOVE ON.

Lack Of Interest. World Equities Markets In The Correction Process?

2010-05-19T10:30:00.007+08:00

Like it or not, right now we are facing some negative impact from the financial crisis occur in the European region. The Dow Jones Industrial Average has been decline for few days and the index has also broken the important level of 10,700 points.

Although we are seeing some continuing selling pressure from the world equities markets, yet our control Malaysian share market still stand tall. This is not a good sign and it shows that the Malaysian share market is not really following the world fundamentals. I won't be surprise if the FBM-KLCI break the 1,300 points.

Technical rebound already finish and right now would be the time to study the share market movement. We are not going to experience a huge fall but rather a bit by bit fall. A bit by bit that will bite us until we didn't realize that most of our holdings have created big holes (losses).

Looking at the current share market performance, it seems that we are facing lack of interest from among the players. Last few of my articles supported me well in terms of my suggestion what we would be facing in the near terms. Right now staying away from the share market would be the best strategies to adopt rather than searching for opportunities because the world equities markets still look unstable. Most of the world equities markets are experiencing some correction process and this correction looks quite dangerous in the near terms and we must be careful all the time.

Why The Greek Financial Crisis Matters To Us

2010-05-15T16:42:00.004+08:00

For the past several days, even casual observers of current events will have heard about the riots occurring in the streets of Greece. Greece is effectively bankrupt and the massive austerity measures being imposed are likely to inflict significant economic damage.

There is no doubt that the Greek crisis will have an effect upon our economy. California and other states, face many of the same economic challenges, which could mean that the problems that face Greece could very well be heading our way. If nothing else, the near 1,000 point intra-day drop in the U.S. stock market demonstrates nervousness in the markets as well as the strong link between what's happening in Greece and the rest of the world.

But stock market volatility is only a symptom of a much larger set of forces. First, there is the fact that just behind Greece awaits several other European countries in equally fragile predicaments. Collectively they are now being referred to as the PIIGS, which stands for Portugal, Ireland, Italy, Greece and Spain. Even if the European Central Bank can bail out Greece, there's no way it can also shoulder the load for the other, much larger countries.

Secondly, these events demonstrate that the PIIGS, along with other developed nations, have been borrowing beyond their means. Just as the U.S. banks discovered, too much debt is as dangerous. Their situation is made worse by the fact that they have exploded their national debt in order to prop up their banks and their floundering economies.

Third, the value of the common European currency, the Euro, is crashing and probably will not survive very long — certainly not in its current state. A bad case of financial chaos may very well be the dominant situation in Europe. That would have the effect of making their goods much more competitive than American goods, thus threatening to forestall the U.S. economic recovery.

Fourth, these events are reminding everyone that the financial crisis is hardly over. We are now facing a contagious global sovereign debt crisis, which is feeding a massive case market anxiety around the world.

Nobody can say with certainty that we fully understand all the remaining risks. There is still the possibility of more unpleasant surprises ahead. If anything, this crisis is showing how fragile the world economy remains, while underscoring what many people have not focused on.

The financial crisis of 2008 was not caused by just a single event like the subprime mortgage markets, Wall Street abuses, or regulatory failures, or thirty years of poor economic policies in the U.S. and abroad. We are facing the perfect storm of financial upheaval around the world caused by all of these and other forces.

Most of all, Greece matters to us because America is on a similar economic and financial path. Imagine the reaction if Washington announced sharp cuts in government programs including Medicare, Medicaid and Social Security, and or cuts in the salaries, benefits and pensions of federal government workers. Imagine the reaction if the rest of the world stopped buying our national debt and if the Treasury Department was forced to dramatically increase interest rates, thereby making our debt burden unsupportable.

It is astonishing that Washington is now adding on new entitlement programs, just as the European social welfare model is collapsing. If we stay on the course we're presently on, we may very well be forced to endure some of the same measures that Greece is now taking. We need to balance the budget by cutting government spending and growing the economy. We can do it now, in an orderly manner or later in a panic. But we will ultimately have to do it.

There is some cause for optimism, since the US has strengths and flexibilities that Greece does not and there is enough time for us to correct the current course. If we wake up to this reality now, we can avert the worst of it. But, if we do not see the writing on the wall and respond appropriately, all bets are off.

Selling On The Run ? Was It A Correct Decision?

2010-05-13T15:45:00.005+08:00

These two weeks will determine exactly where our world equities markets are heading to? It is very important to examine these few weeks movement because we will find out whether the Dow Jones Industrial Average (DJIA) is going for consolidation, uptrend or a downtrend move.

Two weeks from now the DJIA (must not break 10,700 points) will give us a clearer picture as to where our investment must continue on. Whether we can still keep on continuing investing in the shares market or we must hold and wait for more opportunities ahead. At these moments holding lots of cash will be consider as the KING of everything.

Patients will play an important role to determine whether we have the advantages to win and strike more. Having a gun and simply open fire will only wasted our bullets but if we patients enough and aim the target perfectly, the rewards will naturally run in for us.

At these moments our Malaysian share market is experiencing some technical rebound and as usual SELLING ON THE RUN would be the best strategies right now. I’m not trying to be negative but to be more cautious against the current European financial crisis. Whether it was a correct decision or not, we have to judge it nicely. For me I don't like the current scenario in the European region. It looks quite tricky .............

Sell On The Run. Share Market Might Not Stay Longer Enough?

2010-05-11T02:00:00.007+08:00

Last week we have experiencing quite a drastic move from the world equities market and the Dow Jones Industrial Average (DJIA). Both market have tumble quite lots with the DJIA experiencing at one time DROP of 1,000 points in just 5 minutes. Looking at this scenario, we can say that the DJIA is heading for a correction. A correction that I have been expecting all the while but I didn’t expect it to be so drastic.

Yesterday as we can see, the Malaysian share market has started to rebound after most of the counters have experiencing some downfall recently. I’m not talking about the performance of FBM-KLCI as the FBM-KLCI didn’t represent our whole market true picture compare to other regional markets around the world. I’m talking about the overall Malaysian share market performance.

Overall counters have started to rebound but for how long the rebound will be? From my judgement; I would expect the technical rebound will last in few days but this will based on how the DJIA and the world equities performance. Looking at the rebounds today, I would rather say the rebounds that are happening were just a technical rebound and it won’t last long.

It is true we are seeing that the whole world equities markets are power up just like super Bull Run but for how long? Don’t get caught by this huge rebound. It might be a Big Bull Trap. A trap that might hurt us even deeper.

We have to be careful because after this technical rebound, it would eventually bring down the share market movement and the prices will eventually move lower. Why? The overall sentiment was hurt by the crisis in PIGS country and one thing for sure this is just a beginning. Basically whenever the share market been hurt by the drastic fall down, it would take some time to heal the wound. But I’m doubt that the wound would be heal on fastest phase.

I might be wrong in the whole process but we have to be extra careful. My comment was based on my 15 years experience in watching how the whole markets behave. As I have mention, this comment was just totally my point view and we cannot take it that this outlook will happen. You have to judge it deeply.

No one is great and no one is clever, only the smart one will win the last battle.

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

2010-05-06T20:40:00.003+08:00

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.

Part 2 - Why I Wanted To Sell Before May.

2010-05-04T16:15:00.010+08:00

My article " Why I Wanted To Sell Before May " get a respond from one of the readers. Here I would like to post his comment on my blog and we can share with most of the readers from his thoughts and his observation.

May I append my thoughts on your observation.

1. Stock markets comprise of many sectors - plantation, export semiconductors, properties, banking, health, construction and many more. My view is that not all these sectors move together in 2009. Sure prices of some say, construction or banking stocks have moved.

But what is their potential in the next few quarters. Are they overvalued? Maybe sentiment now is negative in view of so many headwinds. I will always look at value buys, taking into account of the economic cycle of each sector, stock valuation and its potential in relation to the ever changing world and local economies.

2. True SELL IN MAY AND GO AWAY. I have made analysis of this phenomena for three periods 1998, 2002 and 2006 - all these years coincided with the World Cup. In the first two, the markets went up in the earlier part of the year culminating in Mar/April and the market trend went down until the end of the World Cup in early July.

Subsequently, it went further down. However, 2006 was a bit different. Market trend, I believe went up until May before it gave up some gains, about 50/60 points but towards the end of the World Cup it picked up and with minor corrections in July and August and went all the way up leading to the 2007 bull run. I managed to catch it from Nov and Dec 2006. The bottom line I would like to share is still the economic fundamentals of the local and world economies.

Are they favourable for firms to make monies and are prices reflective of such potentialities. That I believe is what that counts. Economic data do not lie but the presentation of which is another story. Sometimes a lot of investors get carried away with newspapers reports of how bad a situation is that they forgot the trees for the forests.

3. The year 2010 will be marked by news of potential sovereign defaults. There is ample of these in the news. If we were to borrow from the bank, the bankers would want us to repay and the moment economic conditions do not look good, they will recall the loan. But this time, it is countries that are involved.

These PIGS (Portugal, Ireland, Grecce, Spain) countries borrowed heavily during the last financial crisis and certainly creditors will want their monies back. Have we forgotten? So, this crisis is not something that is not known.

Those who are in the know and followed the economics of Europe would have known and have profited much from the ups and downs. Between the initial stage to the final resolution of this Euro crisis, there is going to be many perception along the way.

Will it be a contagion like the last financial crisis or will be limited to Europe and US? How are the currencies affected? All these create different perception of risks and consequently the fear factor that moves markets up and down.

These are also profit opportunities for some. For example, Mark Mobuis of Templeton Fund read the Dubai crisis correctly and waited till it broke out before buying property stocks at rock bottom prices. For me, I am still at the learning curve or rather still way behind.

4. Lastly, the World Bank, our Government and a few banks have revised our GDP upwards. Does this mean that our exports in the next few quarters will be up, up and away. Will they peak at the end of the 1st quarter or the 2nd quarter. All said what is the bottom line for our companies in the next few quarters.

Are values now reflective of such potential. Is the market overvalued, therefore a correction is in store. How large will this correction be in the face of this improving economic fundamentals? How much of this forecast can be taken at this point of time?

Like I said at the start, I'm sharing my thoughts. The world of investment is truly a fantastic educational arena. Learn it well and make less mistakes. The ultimate outcome will be something worth all the effort.

Regards
James Lau Chea Yong

Why I Wanted To Sell Before May ?

2010-05-03T01:15:00.002+08:00

Why I wanted to sell before May? Quite an interesting question? Well this is just few of my opinion. It would be good if I can share what is in my thinking right now.

1) I have found out that the possibilities to make more return or income in the Malaysia share market is getting lower and lower (Risk versus Reward). Basically looking at the share market momentum right now the Risk is higher than the Reward.

2) According to historical data created by the Malaysian share market, usually coming to the month of May - the share market will start to move down. Please refer to this article SELL IN MAY AND GO AWAY.

3) The immediate financial crisis in Greek and several European country after some downgrading in their debt rating may sparks another crisis. Greece, Portugal and Spain all saw their debt ratings slashed by Standard & Poor's last week. Greece's rating was cut to junk status. The concern in the markets is that a loan default could threaten the euro, the currency shared by 16 European nations, and in turn jeopardize the global economic recovery.

4) 2010 South Afica FIFA World Cup will begin in June and based on historical data, the share market tend to be slow and lack of interest.

5) The Dow Jones Industrial Average has been moving up since March 2009 until now. Will there be a correction in the process? Whether it might happen or not, a pre-caution measure need to be taken and consider.

6) Criminal investigation of Goldman Sachs. American market regulator Securities and Exchange Commission filed a lawsuit charging Goldman Sachs with defrauding and causing losses of over USD 1 billion to investors by misrepresenting facts about a financial product tied to sub-prime mortgages. A Standard & Poor's equity analyst downgraded Goldman's stock to a "sell" rating Friday.

This is just few of my opinion and we cannot take it as an assumptions that the share market will experience some downturn because of these few reasons. It was just for my cautious outlook towards the market. Even until now the FBM-KLCI still look quite fabulous and even stand at higher points. Anyway trade it with careful approach.

May Month To Sell ? Just Watch How The World Equities Performance.

2010-04-28T01:32:00.014+08:00

Frankly looking at yesterday share market performance and overall closing prices, I would presume that the Malaysian share market especially the second and the third liners are gone. Are we really sure that they are really gone? I'm not trying to be in a negative position but seeing the overall movement, we ought to be negative a bit in order to protect ourselves.

Looking at the FBM-KLCI, our index still staying in a comfortable zone but looking at most of the share prices for most of the counters, they seem to be not doing well at all. Was it our share market is heading for correction or just a profit taking? Quite a though question but opportunities still exist with limited counters to choose from.

For the last two weeks, I have been unloading most of my holding that I have purchased since last month. Just want to be cautious with my current position before we entering in the month of May.

World equities market especially the Shanghai Stock Exchange has shows more weakness sign and their trend didn't really follow the trend of the Dow Jones Industrial Average performance. Even in our Malaysian share market also face the same scenario, standing near between 1,320 points to 1,340 points and not moving anywhere.

At these moments, I would still look for opportunities but I would be extra careful not to fall in a Big Bull Trap as this trap might be a big one? For record purposes - always when the share market enter in the month of May, most of time the share market would move to the south poles. Can this thing happen in the first place, that the share market is going down? Who knows, we would never really know what is going to happen next when we wake up in the morning.

FBMKLCI - Trade With Careful Approach ?

2010-04-22T23:08:00.003+08:00

Another week has gone, yet the overall Malaysian share market performance still not really encouraging enough. The market is getting weaker and weaker. No doubt there were some electronic counters which are moving along with the current trend but it didn't means that these counters will represent the current performance or the momentum of the whole market.

I was watching the share market movement during my holiday trip to Chiang Mai, Thailand and I found out that pouring our money during this period would not be consider as a wiser move as the current share market movement that we are experiencing right now didn't have this kind of atmosphere to indicate that the market is on the way of moving up.

Well we will have to be careful as there are so many counters started to show more weakening signal. Although some of them move even quite low, it didn't means that it was an opportunity to buy or to shows that the market has gone? Choosing a right counter would the best strategies to adopt right now as we can see there is still more rooms to play with but with so few counters to choose from? All in all the share market performance will still depends on how the Dow Jones Industrial Average will behave these few days.

Malaysian Shares Performance Showing More Weaknesses

2010-04-16T13:55:00.002+08:00

Well as we can see, our share market reaction towards the Dow Jones Industrial Average didn't match at all. The DJIA is climbing but our share market was supported by the blue chips but most of the second, third liners are moving side way and some even move down a bit.

What really happen in our share market? Do we need something special in order to push our share market move? ...... Any new announcement on New Economic Policy? Simple ..... we don't need to have this kind of things.

All you need to have is an ability to choose the right counters. Based on the overall market performance, we still have some spaces to make some earnings but judging from the current share market momentum, it is quite hard to make some solid decision either to go in during a correction happen?

Right at these moments, the atmosphere around our share market was not as bullish as we thought as there was no volume builds up, no leaders emerge or any exciting news emerges? The strategy now is to choose the right counters. I have been monitoring the whole share market performance for these few days but I couldn't find that kind of exciting moment and feel .........

The conclusion on our Malaysian share market performance right now, hold on some blue chips counters, searching for the counters that can move - rotational play and for the third liners ..... don't even think about it unless they are solid counters.

Some people even said that I'm pessimist but my comment towards the Malaysian share market was based on overall performance but not on any individual counter. I'm not against on anyone given me this kind of comments, it was a healthier comments and I will take it as a complimentary to sharpen my analysis and outlook for our local share market.

Anyway as I used to say that we must always be a Trend Follower not a Trend Predictor.

Dow Jones Industrial Average Movement Divergence?

2010-04-14T01:50:00.003+08:00

These few days the momentum in our share market movement suggest that our share market don't have enough extra power to move on and some even suggest that our share market is lack of interest and confident. We still can make some earnings provided that we are buying the right counter.

I don't know whether what has happen recently in our neighbouring country Thailand can really help our share market as their country facing lots of problem in their political instability. Whether their fund manager will shift their current portfolio from Thailand to Malaysia like what happen during a few crisis happen in the past, still it would take a bit of time for them to reconsider. It happen once before, when Thailand tighten their credit control, most of the fund shifted to Malaysia.

At these moments what would I do right now is to monitor how the share market would react. Now it is not a good time to look for more opportunity as our share market really a hardcore to play with. It is not a healthier sign at all.

Looking back at the Dow Jones Industrial Average movement, it seems that the Dow Jones also don't have enough strength to move on. The indicator also shows some Divergence signal and this one is not a good sign at all.

Basically if this kind of sign appears, the share market will experience some negative impact, less energy to move on, side way market or maybe a sharp drop movement. Looking at the chart, we need to apply few strategies in order to strengthen our portfolio. For me, I don't like the chart pattern at all. I don't feel safe with current share market performance especially the DJIA. I might be wrong but for me I would still adopt some strategies to safeguard my portfolio.

I hope that my outlook was wrong......... HAPPY TRADING and HAPPY SONGKRAN DAY.

Taiwan's Susan Boyle - Lin Yu Chun - I Will Always Love You

2010-04-10T01:26:00.003+08:00

Chubby underdog blows judges away as he belts out Whitney Houston... and becomes YouTube hit.

Lin Yu-Chun, a contestant on Taiwan's "Avenue to Stardom" talent show, nailed a performance of Whitney Houston's "I Will Always Love You" and has since accumulated more than 2 million views on YouTube.

The 24-year-old drew immediate comparisons to Susan Boyle, the plain 48-year-old who became a star via Britain Got Talent and Youtube.

Nicknamed "Little Fatty" (which the Associated Press nicely translated to "round-faced soprano with the bowl haircut"), Lin told the AP that online fame has boosted his confidence.

"You don't have to be a good-looking man or woman to succeed," he said. "Just be yourself and try your best." His pitch-perfect rendition of the Whitney Houston/Dolly Parton mega-hit * I Will Always Love You * blew a panel of judges away.

Have you seen the video yet? If not, watch the must-see below:

But now it seems Lin is ready to take as the year's most unlikely music star and he is the bookies' favourite to win the talent contest. The grand prize on Super Star Avenue is almost as jaw-dropping as Lin's performance - the chance to release an album, as well as $1million (£650,000).

The Bandwagon Still Riding To The Top?

2010-04-09T10:45:00.001+08:00

Another week has pass, the whole share market performance looks quite good with some of the counters started to move and take turn to go up. Yesterday our Malaysian share market was experiencing some profit taking activities after the share market has gone up for few days.

Whether it is an opportunity to buy at the lower prices or to accumulate and sell it at a higher price; its poise another question whether how long our Malaysian share market still can last long? Looking at the current momentum, we still have more rooms to move on but a pre-cautious measure needs to implement in order to safe guard our investment.

I'm not going to predict or forecast where our share market is heading to? All I need to do right now is to be a Trend Follower but not a trend predictor. Right at these moments the bandwagon is heading to the north and I'm going to ride it along until there is a signal that this bandwagon is going to stop (1,300 Points - Main Support)

We are entering in the month of April and we are getting nearer towards 2010 FIFA World Cup South Africa. Another 2 more month (62 days) before the world most prestige's class of football start. In the share market history usually before and during the FIFA World Cup start, the whole world equities market will have a slow momentum and lack of interest. Some might even go down during that time and it will be a quite market.

Second And Thrid Liners Still Mostly Quiet ?

2010-04-02T00:20:00.003+08:00

Was it an April Fool's Day or was it just 1st of April? As we can see, last week the share market performance show more promising movement but all the sudden after the announcement by our Malaysia Prime Minister Dato Seri Najib Tun Razak on New Economic Model (NEM), the Malaysian share market (second and third liners counters) lost its momentum.

Indeed this is quite a hard equity market to play along unless some of us have the capabilities to play with the blue chips counter. No doubt we still have quite a number of counters to play along but still it is not enough to prove that the share market was an easy equity market to create some income.

Choosing the right counters would be the key advantages for those who look for better trade but yesterday trading saw that UEMLAND has some potential to bring up the whole market. I was wondering whether UEMLAND has the ability to lead the market as their Ex-rights shares will be coming out very soon. It is quite important to watch this counter in these few days as we use to know that UEMLAND has the historical record to become the Market Leader for the Malaysian equity market.

Right now our share market still have some potential or more rooms to move on but it is very important that we don't miss out this opportunity. Maybe some of us are still struggling to make some profit but some would have lose during this time but the most important message we need to bear in mind ......

Sometimes We Must Lose A Few Battles In Order To Win The WAR.

Some Trading Opportunity Ahead ? FBM-KLCI Must Stay Above 1,300 Points.

2010-03-29T12:10:00.004+08:00

Since last Wednesday, our Malaysian share market performance has moving quite well with most of the second liners and the third liners are showing more interest. If we take a look and examine the turnover done, it seems we have a healthier sign.

Maybe it is the right time to go in to look for any opportunity appears. Last Friday we also seeing some few market leaders emerged. Well it appears that our share market have more interest compared from the last two weeks performance.

Dow Jones Industrial Average is doing quite well and indeed their performance also did help the overall world equities market performance. Based on these few day performance, the possibilities to generate and to create more wealth shouldn't pose any obstacles provided that the FBM-KLCI didn't break 1,300 points level. This level should pose as guidance for us to do some trading opportunities.

Choosing a right and a perfect counter still play an important role in order to determine whether we can maximize the opportunity. As we can see, there are few hundred counters listed and not every one of them will move. A careful approach need to be implemented as we don't know how well the Malaysian share market will fare this week as the share market momentum just only starting to pick up.

To Jump In Or Not To Jump In ????????

2010-03-23T19:32:00.001+08:00

To jump in or not to jump in ? To buy or not to buy right now ? It is a good question but it is a hard question to answer at these moments. Looking at our current Malaysian share market performance right now, we are still lack of interest. We need to have more volume or turnover in order to enhance the activities of the overall share market in Malaysia.

No doubt we can see some good momentum building up in the Dow Jones Industrial Average (DJIA), still most of the equities market in the region cannot catch up with the performance of the DJIA. That also including what happens to our current Malaysian share market.

Dow Jones is creating new high but not strong enough to confirm that they are already out of danger as they have just started to cross over the 10,720 points. The DJIA need to go up further in order to confirm that their trends are still intact for another round to go up further.

Today we can see most of the shares have started to move a bit after been lagging for quite sometimes for the whole pass two weeks and it seems that most of the shares have found their bottom. They seem to be moving side way with a few show more powerful thrust to move up stronger.

Well I can't say that our Malaysian share market performance right now have more potential to move up because from my past experience - the whole market especially the second liners and the third liners will only start to move when there is a MARKET LEADER emerge.

Do you think that the Malaysian share market will move on this coming few months ? I don't quite really know whether this chart that I have posted can really work or not? I found out this article from one of the bloggers who has mention that this is just one of CLSA Feng Shui Index 2010 that predicted the overall market performance (world) for the whole twelve months. In order to know more about the charts ..... please refer to this website.

FBM-KLCI - Can The Index Sustain At 1,300 Points Level ?

2010-03-17T02:15:00.002+08:00

Another week has pass by and the results are still the same or I can say even worst than the previous week performance. As we can see right now, my suggestion that our Malaysian shares market behavior is just like a dead fish and its really support my point of view. I'm not trying to be a hero or to be proud in what I'm sharing with but rather to acknowledge most of my readers and the players to be careful enough when they started to pour in their money.

What I 'm trying to mention here is; the statement that I have shared was totally not a negative statement but rather a statement to inform most of the player to be on alert and don't get caught by this share market behavior whenever he/she or someone trying to play along with the second liners and the third liners counters would face lots of difficulty. If we check the overall market performance, we can notice that most of the time and most of shares were not performing at all.

Even some of the remisier has started to complain about our current share market performance. Right now we are entering in the month of March and yet the performance of our Malaysian equities market still didn't get along with the performance of the FBM-KLCI. To be positive at these moments is to wait until there is a leader emerge in our share market in order to build up the momentum but to be a bit negative would eventually help us to safeguard our investment ......

Can the FBM-KLCI sustain at 1,300 points level ? Whether the FBM-KLCI can sustain at this level or not it would depend on how the Dow Jones Industrial Average going to fare these few days. Current share market is telling us that the trend is not going anywhere and right now all we can do is to dig and search for a right counter to play along (individual counter).

FBM-KLCI New High - Nothing To Cheer About ?

2010-03-10T21:45:00.002+08:00

Since last week, beginning of March 4, 2010 our Malaysian share market power up strongly and making a break through above their strongest resistance level of 1,300 points. It is a good sign but yet we still can't even make any gains out of it especially when we try follow the FBM-KLCI advance with most of the second liners and third liners.

Our share market performance especially the FBM-KLCI was tremendous but not for most of the individual counters. They can't even really move. Last week someone has mention to me that the article that I have posted was so negative. Actually my article was based on the movement of most of the individual counters. Our FBM-KLCI move because most of the blue chips shares are moving but for the second liners and the third lines counters, their movement are just like dead fish.

Basically if we ask most of the remisier, many of them have argued that it is not an easy market to play with. No doubt the FBM-KLCI is creating new high but most of the lower liners counters still stay near to their previous bottom. At these moments I don't quite understand why our Malaysian share market behaves like that.

This thing has been going on since before Chinese New Year until now and during that time we can't even find any positive rally that might happen. Frankly I would like to pen down some positive news or outlook for the FBM-KLCI but the performance of the overall markets didn't allow me to support this kind of positive statement.

Right now what we can see from here even though the FBM-KLCI is staying at new high, most of the second liners and the third liners must move or else we cannot call it a bull run (no big volume to support the overall market). At these moments it is quite important that the FBM-KLCI have a new strong supporting level at 1,300 points. This new supporting level will act as a major indicator to determine whether our share market is still alive or dead (second liners and third liners counters).

Dow Jones Industrial Average (DJIA) still plays an important role to determine whether the world equities markets still have hopes to move on. I don't foresee anything great for the DJIA unless the DJIA manage to surpass and break the 10,720 points level with big volume or big turnover done. Well this is just one of my opinion and we cannot take it that this opinion was a correct opinion.

GREAT TRADING.

FBM-KLCI Still Didn't Show Any Positive Sign.

2010-03-04T19:05:00.002+08:00

For the past few days, I have been watching how our share market reacts recently. It seems that we have nothing to cheer about. Although we can see some small movement among the blue chips counter, still they didn't show any sign that our Malaysian share market is going to move in a healthy way. Even if the FBM-KLCI still performing quite nice for these past few days, still most the counters are not performing at all.

Basically if we take a look on the world equities market performance right now, they seems to be heading for a roller-coaster ride. UP and Down. Their performance also rely on the performance of the Dow Jones Industrial Average. There are no indications or any indicators that would tell us that the world equities market are heading for a higher level. Even now we must beware that the DJIA might have the chances to bring out a huge Bears and strike the equities markets.

So, from here I would rather say that the possibilities for our Malaysian share market to move even higher level would be quite difficult, that also include the chances for us to make more profit from the current market unless we know how to choose a right counter.

Right now we can pay some attention towards the Sarawak base company as the announcement of the state election is within these few weeks only. As we can see from today movement, some of the Sarawakian base counters have started to move bit by bit.

Thaksin Shinawatra - Rich Businessmen Should Never Play Politics.

2010-02-27T17:09:00.010+08:00

In his post-verdict message to his family and supporters, Thaksin Shinawatra attacked everyone and everything he thought had conspired against him. But he was right on one thing - rich businessmen should never play politics. Even though his warning to fellow business people sounded sarcastic, the punch line was spot-on.

For rich businessmen who might be contemplating entering politics like him in order to help the country, Thaksin asked them to think carefully before taking such a step. "If you are a businessman, think hard if you are tempted to play politics," he said.

"Let me be the last victim," he said through a video link, which brought more tears to many supporters' eyes. And how we wish the same. Let him be the last victim. Whether Thai politics was "mean" as claimed by the ousted leader or not, his entry into politics had made things too complicated for an immature democracy. Thailand simply can't take more of the kind of consequences that followed Thaksin's attempt to wear two hats at the same time.

The Supreme Court spelled out how Thaksin's actions as prime minister helped his business empire. It doesn't matter whether he intended to abuse his power or not. His government's policies and actions and his telecom empire's frequent attempts to seek state leniency or assistance were too intertwined to be ignored. It would have largely helped had Thaksin chosen to stay purely on the business side, or really given up the empire instead of superficially transferring ownership to his children.

The ambiguous share transfers and Shin Corp's repeated adjustments of concession terms, either through its own initiatives or the government's, set Thaksin up for the misery that he bemoaned. If Thaksin was right about Thailand's political "immaturity", he himself contributed greatly to an unhealthy atmosphere. The more immature Thailand is politically, with the elite and military opportunists allegedly always lurking just beneath the surface, the more we need politicians to behave themselves, and big businessmen like Thaksin to provide "help" strictly on the sidelines.

There are other ways to "help" the nation. By paying taxes to begin with. Billions of baht in paid taxes can go a long way to changing many poor people's lives. Rich businessmen don't need to get too ambitious or too patriotic. Just paying all the taxes they are required to pay will do.

Thaksin said sorry to his family, but he didn't say sorry to the nation, apparently because he didn't think he had done anything wrong besides being too stubborn in his "ambition" to serve the country. He must have known the laws as well as the 1997 Constitution, which sought to prevent big businessmen like him from getting into politics, but he had chosen to sneak in, and the rest is history.

Thaksin, after the court verdict, complained that Thailand's justice system picked on him. That has been the excuse he and his apologists have been using all along. Everyone cheats on taxes, they say. Everyone hides something illegally somewhere, more or less. Everyone tries to find legal loopholes and exploit them.

That's true. Many people have been doing what Thaksin and his family did, albeit on diffrent scales. There is one big difference, though. "Everyone" is not prime minister. Thaksin was. "Everyone" is cheating on taxes as businessmen or as office workers and the law is probably discriminatory when it comes to dealing with them. Of course, Thaksin was picked on, but he was "picked on" because he was prime minister. And he has been unable to give us a convincing reason why prime ministers should not be picked on when it comes to this kind of legal and moral problems.

Why is picking on prime ministers over matters like this bad for Thailand? One may say look around and see what has been happening to this country ever since Thaksin was picked on. Again, it's true that the past few years have been miserable, but the question to ask is whether it was miserable because Thaksin was picked on, or because he chose to be in the wrong place and so stubbornly refused to admit it.

Dow Jones Industrial Average Still Weaks?

2010-02-24T00:40:00.001+08:00

Can we trust that the FBM-KLCI still can move higher? This is something that most of us are wondering about. If we take a look on the overall sentiment in Malaysian share market, it seems that the Malaysian share market still lack of interest. From here we can see how the total overall volume done for this market. So I didn't expect a good performance from most of the counters in Malaysian share market.

Even after this Chinese New Year, our Malaysian share market sentiment still didn't pose any significant sign that we are heading for the north pole. No doubt the FBM-KLCI manage to crawl back above the 1,255 points level, still we cannot treat it that the FBM-KLCI is already out of danger.

Basically if we take a look on the world equities market performance, most of the indexes advance accordingly with the Dow Jones Industrial Average (DJIA). Right now the most important element that we need to analyst whether the DJIA still have more rooms to move forward?

Based on the chart, I would still prefer if the DJIA manage to break the 10,700 points level and this will confirm that the current bearish trend will cancel but if the DJIA still hanging around at this level, it would be advisable to watch only as the current trend still didn't show any promising sign. The 10,100 points still remains as the strong support for the DJIA.

However if the DJIA break the 10,100 points level, we would be facing some downtrend market ahead but if we manage to stay above this level then we are in the safer zone and we might have some small rotational play in our Malaysian share market before end of this February. March will be the month we need to watch because usually in the month of March, it will decide whether our current world equities market are moving towards to the north pole or the south pole?

Weighing the Week Ahead: Are You Scared Yet?

2010-02-16T18:50:00.005+08:00

If you find the current market action frightening, you are not alone. There is a bull market in disaster predictions, with a chorus of pundits predicting "another 2008." Sentiment indicators show increasing fear. Improvement in corporate earnings is seen as more evidence that something is wrong. After all, a market that cannot rally on good news is showing weakness.

The chart of the S&P 500 from the last year makes the case for a market that moved too far, too fast. Some see a new bearish leg -- not a correction but a major move to the old lows.

There is another perspective. Conditions are much different from the time of last March's low and also from the October, 2008, post Lehman period. A decline of ten percent or so after a big move is to be expected. Let us look at the S&P 500 with a two-year time frame.

The indicators in the two charts are the same, but the context is dramatically different. The fear from 2008 is ever with us. Patrick J. O'Hare, writing Briefing.com's regular feature, The Big Picture, summarizes it this way:

After the credit crisis of 2008/2009, which clearly presented a systemic risk few portfolios were positioned to deal with, there will be hyper-sensitivity to staying out in front of the next systemic risk.

To this point, consider for a moment how often the word "bubble" is tossed out to explain any uninterrupted rise in asset prices. Before the technology stock crash of 2000, the word "bubble" was rarely invoked in the marketplace, and when it was, it was typically used in association with an exposition on the South Sea Bubble of the early-18th century.

What there is today in the stock market is a bubble in the use of the word bubble.

That is a clever and accurate summary. He might have added that black swans are not found in herds.

Last Week's Action

Let's start with a look at the key data from last week. As usual, I am not trying to be comprehensive, nor am I taking a viewpoint. I will highlight what I found significant.

The Good

The earnings news is petering out for this season, but the general pattern of strength continues. Positive guidance is beating negative guidance by the widest margin in nearly a decade, according to Bespoke Investment Group. This is unusually good news, and eventually it will matter.

Some celebrated the weekly decline in initial claims. This reverses a couple of weeks of poor data. I disagree. The weekly series is just too noisy. Next week's data will be distorted by weather, as will next month's payroll employment data. (The payroll survey is done during the week including the 12th of the month).

The Bad.

The trade balance was a bit worse than expected and inventories a bit lower. The revisions will make the 4th quarter GDP increase lower. The revisions to the initial estimate of GDP come as we get more data. The news is not good, but neither is it some big conspiracy as some maintain.

Regular readers know that I find the University of Michigan sentiment indicator to be important and helpful. This month's reading was lower than expected, and certainly not at the bullish levels of the ISM. This is a helpful indicator for employment and job creation, so the report was bad news.

The bond auctions were weak, with long-term rates moving higher. The ten-year has moved to about 3.7% and corporate spreads have also widened. This is bad for stocks, since corporate bonds are a viable asset allocation alternative.

The news about Greece is certainly a negative. Regardless of the outcome, investors need to worry about the extent of sovereign debt problems in Europe and what it means for the U.S.

Briefly put, there was plenty of negative news.

The Ugly. Volatility! When the market makes major moves lower on little news, and seems dependent on Germany's attitude toward Greece ----- well, that is a problem.

Much of this translated into a stronger dollar. While I have demonstrated that a strong dollar is just fine for stocks in the long run, the current relationship is a strong negative correlation. The hot money sees a pattern like this and it becomes a self-fulfilling prophecy -- at least until it quits working.

The Week Ahead

My focus for next week is on Wednesday. Building permits are a good leading indicator of construction activity. (These cost money and reflect actual plans). Industrial production is also important.

I do not find the "leading" indicators to be very helpful nor am I concerned about the PPI and CPI right now. I do not expect any surprises from the Fed minutes.

The European news and the dollar will continue to be important.

Our Trading Forecast

Our own indicators (see our regular ETF updates for an explanation) continue as bearish, and that was our vote in the weekly Ticker Sense Blogger Sentiment Poll. Here is what we see:

a) Only 13% (down from 67% two weeks ago) of our ETF's have positive ratings. This is extremely weak.

b) The median strength is -22 (down from -15 last week), very negative.

c) 87% (up from 35% two weeks ago) of the sectors are in the "penalty box," showing much higher risk than in recent weeks.

d) Our Index Package has a negative rating. We own SH and DOG, the inverse ETF's for the S&P 500 and the DJIA.

A Helpful Insight

This is a good time for investors to think about long-term needs and goals. There are some simple solutions for those who are afraid of a repeat of 2008.

I had some reader questions after last week's update, wondering whether asset allocation models had triggered. Mine have not. The "correction" is still relatively small when compared to the recent gains.

We watch the asset allocation carefully for clients, and the indicators are closer to a conservative stance, but not there yet and certainly not short.

The average investor can try to do this at home. There are plenty of ideas online. You need to find a good method, continually update your indicators, avoid emotion, and execute the trades in a timely fashion. Few investors can do this, even when trying to follow a "lazy" portfolio. That is one reason why they trail the market by 4 percent a year while top advisors beat the market by solid margins.

Unless you are exceptional on these fronts, you might look for a good financial advisor. If you do, insist on someone who has personal service -- who understands your specific needs, risk tolerance and requirements. If the fees were low enough, and the stock picks were good enough, this would be better than you could do on your own. Over many years, it might be the difference between a comfortable retirement and a few more years of work.

Whatever you do, you should still pay careful attention to your investments. We no longer live in a "buy and hold" world.

Happy Chinese New Year 2010

2010-02-13T11:55:00.003+08:00

02/14/2010 - 02/02/2011 (Metal)

According to the Chinese Zodiac, the Year of 2010 is the Year of a Golden Tiger, which begins on February 14, 2010 and ends on February 2, 2011.

The first day of the lunar New Year 2010 falls on the 14th day of February, which is Saint Valentine's Day, so it is a day the West celebrates as a lovers' day, a day of romance.

To the Chinese, it is the start of the Golden Tiger Year. The Tiger is the third sign in the cycle of Chinese Zodiac, which consists of 12 animal signs. It is a sign of courage.

This fearless and fiery fighter is revered by the ancient Chinese as the sign that wards off the three main disasters of a household: fire, thieves and ghosts. On New Year's day itself, it is beneficial to celebrate, to be happy, to have smiling faces, and to refrain from scowling, quarreling, or criticizing anyone.

***** GONG XI FA CAI 2010 *****

FBM-KLCI Heading For Correction ? Trade With Cautious.

2010-02-09T10:37:00.003+08:00

Based on today share market performance couple with the Dow Jones Industrial Average movement, I would consider that our share market especially the FBM-KLCI is moving for a good correction. As we can see that the overall world equities market right now are heading for correction also.

Right now it is not a good time to accumulate but rather a good time to monitor for any technical rebound opportunity that might occur (recommend for a short terms play). Maybe the technical rebound might happen these few days or after this Chinese New Years but we still have another 3 days to watch on how the FBM-KLCI would react these few days. With the total overall market turnover stand so low, making a bit of profit from any technical rebound would be quite difficult to achieve and it is not easy to play along.

From my point of view, I will rather and consider jumping in if there is a panic selling activities but I'm doubt that it will happen as most of the share prices didn't experience any bull run recently. The on-going healthy correction right now would be consider the best medicine for share market as this would bring more opportunity lying ahead where by we can see some healthy movement in future for us to trade.

WATCH .. KNM - Trading Opportunity

** Malaysian-Shares Blogspot **

Happy Chinese New Year 2012.

FBM KLCI Consolidating For Chinese New Year Holiday?

Quiet Trading Ahead Of Christmas Celebration ???

DownTrend Coming In ? Cautious Trade Ahead !!!

Current Share Market Sentiments Still Looks Nice. Be Careful In The Month Of December!

Selamat Hari Raya Haji

"" Happy Deepavali ""

Remember Current Share Market Sentiments Still Downtrend!

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

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

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

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

Selamat Hari Raya

Was It A Good Time To Accumulate ?????

Technical Rebound In The Process. When Will It End ????

Technical Rebound Might Be Happening Soon ???

Might Be A Trend Reversal ? Time To Buy ?

Market Crash !!! Can This Level 1,476 Points Hold On For FBM-KLCI ???

World Equities Looks Very Unstable !!! Stay At Sideline !!!

Selamat Berpuasa To All Muslimin Friends.

Still Not Easy To Trade With Current Sentiments?

Hibiscus Petroleum Berhad - To Apply or Not To Apply?

Star to Buy 4.99% of Catcha Media for RM4.97m

8 IPOs Listing In The Month Of July !

FBM-KLCI Sets To Make All Time High?

The XOX Berhad Saga. What Has Gone Wrong - Part 2.

IPOs Recently Debut. What Has Went Wrong on XOX Berhad?

Lousy Performance In The Month Of June. World Equities Market Unstable.

Not A Good Time To Play In The Month Of June ?

FBM-KLCI Reaching The Month of JUNE. Up or Down ?

FBM-KLCI Moving Side Way But Prices Are Heading Down Bit By Bit?

FBM-KLCI Moving Up Or Moving Down ?

Market Seems To Have More Potential To Move Higher ?

The Bulls Are Coming Back?

FBM-KLCI Touching Their Strongest Resistance Level!

An Opportunity Arise From Japan EarthQuake?

FBM-KLCI Looks Much More Better. Can The Index Move Higher?

TIMING Play An Important Role To Determine Our Profit Potential

The Bears Are Taking Over The Share Market?

The Bulls And The Bears Are Fighting Each Other.

FBM-KLCI Might Be Consolidating ?????

Gong Xi Fa Chai

Quiet Market Ahead Of Chinese New Year Celebration.

All Time High For The FBM-KLCI, The Bulls Are Charging!

Good Sign, Bulls Are Coming Back ?

Merry Christmas

Momentum Getting Better And Better. Turnover Still Low.

December Month - An Accumulation Month ???

FBM-KLCI Still In The Safe Zone ????

Are The Bulls For The FBM-KLCI Is Resting ?

FBM-KLCI Must Maintain At 1,500 Points And Above?

Dow Jones Fighting Its Strongest Resistance Level?

Dow Jones Is Reaching Near Their Strongest Resistance At 11,200 Points.

Market Total Turnover Still Not Enough. Lack Of Interest ??????

Volume Must Build Up. Potential Lying Ahead For Speculation Counters?

FBM-KLCI Move Like Bullet Trains. Nothing Can STOP Them.

Same Old Story - FBM-KLCI At New High. Sentiments Still Not Good.

FBM-KLCI Create New High, Speculation Counters Cannot Perform?

Can The FBM-KLCI Continuing Their Uptrend Journey?

FBM-KLCI Might Be Consolidate In Near Terms?

Strong Support At 1,348 Points For FBM-KLCI.

FBM-KLCI At New High. Still Have More Rooms To Move On?

Death Cross For Dow Jones Industrial Average. Becareful.

Dow Jones Industrial Average Forming Head And Shoulder ???

Quiet Market Ahead For The World Equities Market ????

Thursday's Sell-Off: Bad News for Bulls - Dow Jones Industrial Average

1,300 Points Still Stand As The Main Support For FBM-KLCI.

Can The Dow Jones Industrial Average Move Higher ?

Accumulate During World Cup Games Going On????

Malaysia Flag Was Raising Half Pole And Upside Down?

Hungary - Second Wave Of Financial Crisis Have Just Started ?

Any More Rooms For FBM-KLCI To Move Towards South Pole?

Selling On The Run. Quiet Market Ahead?

Catching A Falling Knife?

Technical Rebound Around The Corner?

FBM-KLCI Down -21.94 Points. An Opportunity?

Lack Of Interest. World Equities Markets In The Correction Process?

Why The Greek Financial Crisis Matters To Us

Selling On The Run ? Was It A Correct Decision?

Malaysian-Shares Blogspot