Trend is still up !
Monday, January 12, 2009
3:28 pm - Market Report by Bill Wermine
Dear Traders,
Friday, The Dow was down 143 points however 83 of those points was in the last 9 minutes of trading. THis Dow drop in my opinion was small in the face of the worst month of US job losses since 1946 - 524,000 jobs . If this had happened 3 months ago, the Dow would have dropped at least 600 points. It means most of the bad news is mostly discounted.
The crowd of KLSE traders will react negatively Monday to the Dow drop but this would be an opportunity to pick up at a cheaper price shares you have been following. The crowd of analists focus on the closing price of the day and will react. Not many follow the intraday price action and the last 9 minute 83 point Dow drop was in my opinion a manipulation by smart money to create fear so they can buy cheaper from the sheep investors on Monday. The negative close will create more fear and doom/ gloom.
Notice the strong support building in the KLSE and strength in the background as evidenced by climactic selling on 31 Nov 08. Focus on the strong high quality shares with good sales and earnings + dividends. This powerful sign of strength should persist.
Remember the stock market is a jungle with large predators prowling around to catch the weak and sick prey. They will employ many tactics to scare you out, shake you out and take away your quality holdings under the cover of fear, uncertainty and bad news.
Have a good week ahead
Bill
KLSE Weekly Chart
Friday, The Dow was down 143 points however 83 of those points was in the last 9 minutes of trading. THis Dow drop in my opinion was small in the face of the worst month of US job losses since 1946 - 524,000 jobs . If this had happened 3 months ago, the Dow would have dropped at least 600 points. It means most of the bad news is mostly discounted.
The crowd of KLSE traders will react negatively Monday to the Dow drop but this would be an opportunity to pick up at a cheaper price shares you have been following. The crowd of analists focus on the closing price of the day and will react. Not many follow the intraday price action and the last 9 minute 83 point Dow drop was in my opinion a manipulation by smart money to create fear so they can buy cheaper from the sheep investors on Monday. The negative close will create more fear and doom/ gloom.
Notice the strong support building in the KLSE and strength in the background as evidenced by climactic selling on 31 Nov 08. Focus on the strong high quality shares with good sales and earnings + dividends. This powerful sign of strength should persist.
Remember the stock market is a jungle with large predators prowling around to catch the weak and sick prey. They will employ many tactics to scare you out, shake you out and take away your quality holdings under the cover of fear, uncertainty and bad news.
Have a good week ahead
Bill
KLSE Weekly Chart
11:49 am - 18 L/C in the making for KPJ
Firdaus,
If you wish to buy, here is what you do :
Here is my analysis on KPJ.
There is a lot of resistance at rm2.80. It is not technically a good buy due to overhead resistance.
If you wish to buy, here is what you do :
Wait for it to take out RM2.75 at the end of the day. If by 4.30-4.45, it is above RM2.75-2.76, buy before market on close.
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