Bearish sentiments, bearish trend

Since the last posting, the market has been through many changes. Oil price keep making new highs which lead to greater worries on inflation, locally political uncertainties has worsen the situation which lead investors into selling.

Yesterday the KLCI has came down to test the 1157 level which was the low registered on 10Mac08, the CI saw no defense at the level and went straight to test the psychological support at 1150 and registered a new low at 1149, late bargain hunting help to bring the CI to close at 1153. The question now is how low will the CI goes? Technically speaking, the KLCI has entered a bear trend, it will continue to go lower to test the support at 1141, 1130 and 1105. The best strategy now is to hold cash.

Market goes through different phases just like the the four seasons, we are perhaps going into the winter now, this is perhaps the time to hibernate, but as a trained investor, we should be diligently doing our homework while others are hibernating as opportunities are always found in a crisis. Look at the relative strength of the counter relative to CI, look at signs of substantial shareholder's accumulation can perhaps give ones a clue as to where the opportunities are.