Technical rebound

The world market rebounded strongly on Friday, thanks to the concerted effort by the six central banks and the U.S. government on the bailing out of AIG, the largest insurer, and the market responded strongly. However, that may not be the end of the U.S. financial crisis yet, as how many more big trouble case are there is still to be uncovered. For the DJIA, It is just a technical rebound for the time being, and back to its sideway consolidation zone of 11,000 - 11,800. It need to be able to break above the 12,000 mark before any meaningful trend change and bull run can take place.
As for the KLCI, the index has tested its downside targets and rebounded from the lower trend channel support strongly, forming a long lower shadow doji star reversal pattern. This reversal pattern was confirm on Friday by a bullish candlestick. The bullishness may continue, however, the overhead resistance will be seen at the 1038, 1050 and the 1070 levels.

Technically, this is just a technical rebound which could be shortlive, and maybe view as a good opportunity to get out. The down trend of the KLCI has not change until the CI can work its way to break above 1100 level.

As it was mentioned before, there are always opportunities during a crisis. Those who have followed the market closely and understood the market signals of smart-money accumulation would have made some quick profit on many counters.

Anyway, trade carefully with your stop loss always in place, you'll be alright. In trading, it is not how much one can make per trade, it is how consistent and how long you can last in the game that counts.