Tuesday, September 2, 2008
9:56 am - KLSE Outlook by Bill Wermine
Dear Traders,
Today we had our Traders Club meeting. We spoke about the formula that underlies how Warren Buffet selects investments. This was shared by Robert Miles in a talk he recently gave at the securities commission which I attended. Miles is an associate of Buffet who travels around the world sharing Buffets methods.
For those who were unable to attend the formula is E= MC squared or E = Earnings, M= Management and C = credibility. How profoundly simple but how powerful.
How do we measure credibility was a question I asked at the meeting today. My suggestion is to find analists such as Mr Ang of Phillip or Mr Pong of Jupiter Securities but you need to open an on line account with Jupiter to access him or an investment with Phillip to talk to Mr Ang. Both have a long track record and knowledge of most KLSE listed companies. Make friends with them and others like them. Another source a member mentioned is I Capital, Tan Teng Boo who has a 20 year successful track record in the KLSE and writes a weekly research report. He is independent and does not front run for any stock broker. There are others and I would hope if you find someone or know of someone let me know. His weekly letter is RM 720 a year and a bargain for the quality of his research
I am speaking as an investor rather than a trader and by using this formula I have avoided most of the KLSE disaster in the last 5 months. My main mistake this year was MayBank in which I cut loss. MayBank fails on the credibility standard. On the other hand we hold F & N, Nestle, PPB, IOI Corp, Dutch Lady which meet the credibility standard. They have help up well in the market downturn and should participate in the next rally.
If you follow W Buffets formula and combine with price, volume, support resistance and any technical tools you are comfortable with you have a large edge and can survive even in a market slowdown.
Expect some pullback next week as the Fridays price bar was a high volume, wide spread bar. The 1090 area should provide some support. I am sure there are buying orders waiting at the level. At this point only buy W Buffet type of shares.
Today we had our Traders Club meeting. We spoke about the formula that underlies how Warren Buffet selects investments. This was shared by Robert Miles in a talk he recently gave at the securities commission which I attended. Miles is an associate of Buffet who travels around the world sharing Buffets methods.
For those who were unable to attend the formula is E= MC squared or E = Earnings, M= Management and C = credibility. How profoundly simple but how powerful.
How do we measure credibility was a question I asked at the meeting today. My suggestion is to find analists such as Mr Ang of Phillip or Mr Pong of Jupiter Securities but you need to open an on line account with Jupiter to access him or an investment with Phillip to talk to Mr Ang. Both have a long track record and knowledge of most KLSE listed companies. Make friends with them and others like them. Another source a member mentioned is I Capital, Tan Teng Boo who has a 20 year successful track record in the KLSE and writes a weekly research report. He is independent and does not front run for any stock broker. There are others and I would hope if you find someone or know of someone let me know. His weekly letter is RM 720 a year and a bargain for the quality of his research
I am speaking as an investor rather than a trader and by using this formula I have avoided most of the KLSE disaster in the last 5 months. My main mistake this year was MayBank in which I cut loss. MayBank fails on the credibility standard. On the other hand we hold F & N, Nestle, PPB, IOI Corp, Dutch Lady which meet the credibility standard. They have help up well in the market downturn and should participate in the next rally.
If you follow W Buffets formula and combine with price, volume, support resistance and any technical tools you are comfortable with you have a large edge and can survive even in a market slowdown.
Expect some pullback next week as the Fridays price bar was a high volume, wide spread bar. The 1090 area should provide some support. I am sure there are buying orders waiting at the level. At this point only buy W Buffet type of shares.
KLSE Daily
I need your assistance. An indicator which can help you find a market turning point or bottom is how many shares make new lows each day. If the market itself makes a new low but less and less shares make a new low it means selling is drying up. No more supply
I need the MetaStock custom formula for the KLSE to answer this question as I am not an expert at MetaStock formula code. . I have the one for the NYSE which is :
Security("C:\MetaStock Data\BM Data\X.NYSE-L",C)
If someone could modify this for me for the Telequote data service I would appreciate it and I will share it with our members.
Also, next Sunday on 7 Sept we are holding a meeting at the Crystal Crown Hotel at 2 PM to 5 PM . Mr Pong of Jupiter Securities will speak and give his world market outlook. including commodities. This is a rare opportunity to meet him and get his views. Martin will preview our next foundation course and opportunities in the local futures markets. I will share some research on the AUD, Dow and Crude OiI using TG software from G Holmes of Chicago . There is no charge for this talk. We are advertising and we expect a large crowd. Please let me know if you wish to come.
Have profitable week ahead and enjoy your Monday holiday
Bill
I need the MetaStock custom formula for the KLSE to answer this question as I am not an expert at MetaStock formula code. . I have the one for the NYSE which is :
Security("C:\MetaStock Data\BM Data\X.NYSE-L",C)
If someone could modify this for me for the Telequote data service I would appreciate it and I will share it with our members.
Also, next Sunday on 7 Sept we are holding a meeting at the Crystal Crown Hotel at 2 PM to 5 PM . Mr Pong of Jupiter Securities will speak and give his world market outlook. including commodities. This is a rare opportunity to meet him and get his views. Martin will preview our next foundation course and opportunities in the local futures markets. I will share some research on the AUD, Dow and Crude OiI using TG software from G Holmes of Chicago . There is no charge for this talk. We are advertising and we expect a large crowd. Please let me know if you wish to come.
Have profitable week ahead and enjoy your Monday holiday
Bill
9:25 am - KLCI is still in the uptrend mode !
The market may move sideway for a while first before resuming uptrend.
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