"T+10 interest FREE margin trading account"

Maximize your profits through the power of T+10 interest FREE margin trading account, an account which gives you more time to ride the uptrend. Absolutely interest FREE. Attractive brokerage for online trading. Get Real-time guidance from Trend Master. Call +603-5192 7249 for more details.

Wednesday, November 7, 2007

What goes up must come down.

In my last post, I mentioned that our KLSE has on last Tuesday showed signs of hesitant to move further, and in fact on last Wednesday the market was under profit taking mode, but a last minute magic show brought the KLCI back to the green to closed at 1413.65 (31/10/07), and formed a Hanging-man candlestick. On last Thursday, the market open with a 6 points gap up and hit the record high of 1423.81 within the first 10 minutes, and thereafter goes into heavy profit taking and closed at 1409.16 forming a Dark Cloud Cover candlestick, the turn has begun. What goes up must come down is something that never change in the market. On last Friday, the market started with a short panic selling with Dow's overnight fall of 363 points, however, the panic was only for a short moment, and smart investors comes in to collect at lower price to end the KLCI higher than the opening at 1397.48 on Friday. On Monday, the market opened with a positive mode, however, the huge decline on HSI of 1500 points (5%) dragged down the regional market, and KLCI follows the fall to close at 1384.73 forming a Bearish Engulfing candlestick. Yesterday, the market was very quiet, KLCI slipped slightly down to a low of 1380.43 but the bull quietly surface at later part of the day, fighting back the battle and closed KLCI at 1389.11 forming a bullish Hammer candlestick.

A similar market bottoming Hammer candlestick was also seen on the HSI. My view is that the HSI's correction is still within the acceptable range in a uptrend. The rest are just fear.

As for the DJI, it is finding a strong support around the 13500 level. In fact, DJI closed Tuesday at 13660.94 with bullish reversal candlestick. Broadly speaking, DJI has moved into a sideway trend now, choppy ride ahead is expected.








On the individual counter side, JAKS, MPCORP, and EDEN may offer some good trading opportunities.









(Click to enlarge)

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 may 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.

No comments: