Super high volume !
This morning is already up 50%. I believe the same ppl playing Tanahmas, Kia Peng, etc.
Monday, July 21, 2008
10:10 am - Market Outlook from Bill Wermine.
Dear Traders,
Today (last Sat) we held an interesting Traders Club meeting. Pong who heads JupiterSecurities Research gave an objective market outlook forecasting the KLSE tobottom in the current area give or take 50 points.
Today (last Sat) we held an interesting Traders Club meeting. Pong who heads JupiterSecurities Research gave an objective market outlook forecasting the KLSE tobottom in the current area give or take 50 points.
His point was that theKLSE has reached an oversold extreme, foreign funds have sold most of theirholdings, PEs for the KLSE Index are at historical lows and investmentfunds hold large cash positions. Catalists could be a recovery in the Dow,drop in crude oil prices or stability in local politics or an officialannoucement that the US is in recession.
Due to the low turnout -only about 25 members attended- my traders clubindicator says we are close to a bottom. Whe we get 80 or 100 membersattending it is close to a top. Also when I asked who were bullish only 1member raised his hand. Bearish- almost everyone.
This was the lowestturnout in 3 or 4 years .
I spoke about the inflation threat we are facing and alternative investmentsto protect our selves. Man is your best inflation protection bet at thepresent and the Man Essential fund will close on 31 July.
If interestedgive me or Martin a call. Next Man fund may launch in 3 months and there isno certainty they will offer the 4 % sales charge rebate as offered in thecurrent launch Also for those concerned that the Aussie will collapse versus the US dollar,60 % of the Man assets for Man Essential fund are in AUD Bonds.
These bondswill rise in value should Australia drop interest rates and that should givesome protection against the exchange rate risk. These bonds make up yourcapital guarantee.I was unawair of this and Andy explained it to a Maninvestor who was concerned about this currency risk.
Ms. Goh Li Ling, Martin's assistant, and professional futures trader gave apresentation on Point and Figure charting and how it is an effective shortterm trading method as it clearly identifies short term support andresistance. She is making steady and consistent money with this method butthis is due to her solid discipline and risk management strategy as well aspoint and figure. If any of you are interested in this method on Point and Figure chartingshe will share with members of our group a classic reference work by afamous trader.
Give her a or Martin a call at her office in CIMB 2084 9999 ext 3532.
Have a good week and remember to keep your nerve in the face of marketpanic.
Bill
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