Took a break from writing to observe the market. Situations have not change very much. Since my last posting, KLCI has not moved anywhere, it was trapped between the recent low of 1064 and the high of 1100.50 registered on 29 Aug '08 on budget announcement. It losses steam very fast, as mentioned before that was just a technical rebound. Foreign fund continue to sell down on blue chip shares has dragged down the KLCI, we are just at the edge of retesting the 1064 low, if this is breached, which is likely to happen, will see another round of selling that would bring the CI down to 1048 level. The government is trying hard to prevent Anwar's 916 plan from happening, but would that stopped the CI from sliding down? The fear factor is dominating the market, many are just selling to stand sideline. Volume has remained very-very low in the 300 million shares region, showing a lack of interest from the retailers, however, the smart-money or the big-boys are happily collecting from the fearful sellers.
The charts of all other major bourses show that the market has come back to where it begun. The chart of DJIA and S&P500 of the U.S market shows that they are in a sideway market, one day up and one day down. For the time being the DJIA support at the 11,000 is crucial, and the ultimate support will be 10,698. If the is breach, the whole world will have another knee-jerk, and DJIA will go back to where it begun, the is the 10,000 level.
Took a break from writing to observe the market. Situations have not change very much. Since my last posting, KLCI has not moved anywhere, it was trapped between the recent low of 1064 and the high of 1100.50 registered on 29 Aug '08 on budget announcement. It losses steam very fast, as mentioned before that was just a technical rebound. Foreign fund continue to sell down on blue chip shares has dragged down the KLCI, we are just at the edge of retesting the 1064 low, if this is breached, which is likely to happen, will see another round of selling that would bring the CI down to 1048 level. The government is trying hard to prevent Anwar's 916 plan from happening, but would that stopped the CI from sliding down? The fear factor is dominating the market, many are just selling to stand sideline. Volume has remained very-very low in the 300 million shares region, showing a lack of interest from the retailers, however, the smart-money or the big-boys are happily collecting from the fearful sellers.
The charts of all other major bourses show that the market has come back to where it begun. The chart of DJIA and S&P500 of the U.S market shows that they are in a sideway market, one day up and one day down. For the time being the DJIA support at the 11,000 is crucial, and the ultimate support will be 10,698. If the is breach, the whole world will have another knee-jerk, and DJIA will go back to where it begun, the is the 10,000 level.
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