KLCI is looking very bearish today !
Monday, December 1, 2008
9:48 am - Market Outlook by Bill Wermine
Dear Traders,
Bad times dont last....tough investors will..
Jesse Livermore wrote in his book, How to Trade in Stocks "Whenever the market does not act right or the way it should that is reason enough to change your opinion." Despite the onslaught of bad news - S & P down 51 % for the biggest drop since 1931- Citibank bailed out to the tune of USD 350 billion,
GM and Ford insolvent, House foreclosures in the US at the highest rate since 1932. Unemployment jumps to 18 year high etc etc. Terror strikes Mumbai- however if Livermore were alive he would be buying because the world markets are refusing to go down on extreme fear, panic and bad news.
The Dow Jones jumped 1250 points last week and most world markets also made impressive gains. Even the KLSE stabilized despite the universal negativity of the analist crowd.
Carlos Slim, the Mexican billionaire bought 29 million Citigroup shares for USD 3.10 a share and Citi since recoved to over USD 5.60. a 100% return in 3 weeks.
He did not become a billionaire by being stupid. Continue to accumulate high grade dividend KLSE shares in the consumer sector. Palm oil is also stabilizing. Hedge fund Man AHL had a 16 % return last month. The capital guaranteed funds returned 8.4 %. Man fund managers are reversing slowly back into long commodities/ stock futures after making money on the short side.
Man is the smart money
Dow Jones- Smart money is buying. Notice the green box near the right edge of the chart signaling stopping volume and test of support. In fact bad news is the friend of the smart money.
Bad times dont last....tough investors will..
Jesse Livermore wrote in his book, How to Trade in Stocks "Whenever the market does not act right or the way it should that is reason enough to change your opinion." Despite the onslaught of bad news - S & P down 51 % for the biggest drop since 1931- Citibank bailed out to the tune of USD 350 billion,
GM and Ford insolvent, House foreclosures in the US at the highest rate since 1932. Unemployment jumps to 18 year high etc etc. Terror strikes Mumbai- however if Livermore were alive he would be buying because the world markets are refusing to go down on extreme fear, panic and bad news.
The Dow Jones jumped 1250 points last week and most world markets also made impressive gains. Even the KLSE stabilized despite the universal negativity of the analist crowd.
Carlos Slim, the Mexican billionaire bought 29 million Citigroup shares for USD 3.10 a share and Citi since recoved to over USD 5.60. a 100% return in 3 weeks.
He did not become a billionaire by being stupid. Continue to accumulate high grade dividend KLSE shares in the consumer sector. Palm oil is also stabilizing. Hedge fund Man AHL had a 16 % return last month. The capital guaranteed funds returned 8.4 %. Man fund managers are reversing slowly back into long commodities/ stock futures after making money on the short side.
Man is the smart money
Dow Jones- Smart money is buying. Notice the green box near the right edge of the chart signaling stopping volume and test of support. In fact bad news is the friend of the smart money.
Announcement:
For those who trade currencies this may be of interest. Phillip has a new platform with many new features that compare favorably with other services. The Singapore Phillip team will showcase it. Below are the details:
This is a presentation on THEIR latest FOREX Trading platform. It a more dynamic, and powerful platform for the FOREX traders.
Date and Time: Thursday (4th Nov) 6.30 pm onwards, and Saturday (6th Nov) 1 pm onwards
Attendees will get to see the new trading platform as well as have hands on experience on the platform.
Interested participants can email josephtan@phillip.com.sg or grace@phillip.com.sg.
Cheers
Bill
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