Millionaire Trend Trader: KLCI making a turn.

Tuesday, October 9, 2007

KLCI making a turn.

Dear friends,

I am sure many of you have a fruitful profit taking day today, especially on counters such as BJCorp, Jaks, Landmrk, etc.

As pointed out during our meeting last Saturday, based on the Candlesticks reversal signals, KLCI has gone into a profit taking mode and actually formed a bearish engulfing candle with long upper shadow today. The KLCI is expected to continue with the correction for the next few days as the market is expecting heavy delivery of shares on Wednesday and Thursday ( a result of heavy volume traded on last Friday, 2 Billion shares, and Today, 2.1 Billion shares).

For those of you who are holding speculative stocks, do consider to lock in your profit while you still have them. However, the speculative stocks may still be active while CI corrects. KLCI may correct down to 1350 level to close the Gap formed on 2/10/07, which is considered healthy correction after more than 90 points gain running from 1290 level since 19/9/07.

As for our study stock, BHIC, Landmrk, BJCorp are performing very well, BJCorp may run into serious overbought condition, and you can lock in some profit first if you have bought it at the 60 - 70 cents level.

Jaks has formed a Shooting Star today, many have taken profit today, if you have not, perhaps do it tomorrow morning.

MUIIND has a go run up over the last 2 days, however, it is also forming a Shooting Star candle today with exteme high volume, a sign of distribution, take your profit first if u have the counter.

Some of the counters worth watching for short term trading are AMDB, Pilecon, AKN; for medium term position trade, BHIC, Landmrk, Sunway, Sarawak, Magna, Pohkong, PPedana and KPS are worth watching.

(Double click on the chart to enlarge it)

Disclaimer: The above is not a recommendation to buy or sell, all suggestions mentioned are purely for academic study purposes for our trend trader club members only, and the author have personal interest and position in some of the examples mentioned. Any losses incurred if you were to trade base on the study examples above is sole your own responsibility. Do consult your dealer before taking any action

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Tuesday, October 9, 2007

KLCI making a turn.

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