However, tomorrow wud be profit taking day !
Monday, March 30, 2009
9:38 am - Market Outlook by Bill Wermine !
Dear Traders,
Wall St erupted into a hightened state of euphoria last week, as the treasury unveiled the so called Public Private Investment Program (PPIP) a clever scheme to bankroll private investment firms and guarantee them huge profits, in return for participating in an illiquid market and buying from Wall St bankers at vastly inflated prices home loans which are in default.
All the major stock indexes soared except the KLSE as Treasury Secretary Timothy Geithner laid out details of the PPIP a plan to allow US banks unload 500 billion USD of bad debts that amount to an unprecedented looting of taxpayers funds to benefit the financial elite.
The FED will act as the bad bank and leverage USD 100 billion from TARP by 6 times effectively lending 600 billion to private investment firms in the form of low interest non recourse loans. If the transactions lose money the taxpayer pays. If the transactions win the firms that put up the money will make huge profits.
Even though the bulk of the capital comes from the government, the private investment funds will set up the scheme and will receive lucrative fees and evenly divide up the booty.
This is theft on the grand scale and there is nothing the public can do about it. The politicians and banking elite control the game. In fact it is a rigged game. At some point the music will stop, the party will end and the piper must be paid.
Creating vast amounts of money out of thin air is like a shaky company managed for the benefit of insiders who issues more shares thus diluting the value of existing shareholders.
The masters of the universe on Wall St such as Goldman Sachs , the Federal Reseve, the US treasury are depreciating the US dollar in the same way- commen sense dictates that when more currency is chasing the same goods inflation will roar ahead.
In the short term this will create trading opportunities so be sure to manage your risks and that goes for local shares as well.
Focus on high quality dividend payers. Market should consolidate next week but hopefully the new PM will be KLSE positive as the uncertainty is now removed
What is the answer to the uncertainty, money printing, manipulation ? In a word gold.
On 25 April we will have our traders club at CIMB auditorium at 10 to 12 AM. Nigel Foo may give an outlook on local market and global indices.
In the afternoon of the 25th from 2 30 PM to 5 30, we plan a gold conference with some very valuable wealth protection info.
Futures Broker Martin will share a powerful gold trading system to time the gold futures market. We plan on having a fund manager from Deutsch Bank to present the outlook for gold mining shares and the benefits of placing some of your assets in a gold mining share unit trust.
We also plan on having a gold shop owner talk about the physical supply and demand picture of gold in Malaysia
Phillip Futures of Malaysia will share how to trade gold futures as they are licensed to do so. As we are holding this in a major hotel there will be a small cover charge for the gold conference.
Please let me know if you wish to attend the gold conference so we can plan.
Have a productive week ahead
Bill
Wall St erupted into a hightened state of euphoria last week, as the treasury unveiled the so called Public Private Investment Program (PPIP) a clever scheme to bankroll private investment firms and guarantee them huge profits, in return for participating in an illiquid market and buying from Wall St bankers at vastly inflated prices home loans which are in default.
All the major stock indexes soared except the KLSE as Treasury Secretary Timothy Geithner laid out details of the PPIP a plan to allow US banks unload 500 billion USD of bad debts that amount to an unprecedented looting of taxpayers funds to benefit the financial elite.
The FED will act as the bad bank and leverage USD 100 billion from TARP by 6 times effectively lending 600 billion to private investment firms in the form of low interest non recourse loans. If the transactions lose money the taxpayer pays. If the transactions win the firms that put up the money will make huge profits.
Even though the bulk of the capital comes from the government, the private investment funds will set up the scheme and will receive lucrative fees and evenly divide up the booty.
This is theft on the grand scale and there is nothing the public can do about it. The politicians and banking elite control the game. In fact it is a rigged game. At some point the music will stop, the party will end and the piper must be paid.
Creating vast amounts of money out of thin air is like a shaky company managed for the benefit of insiders who issues more shares thus diluting the value of existing shareholders.
The masters of the universe on Wall St such as Goldman Sachs , the Federal Reseve, the US treasury are depreciating the US dollar in the same way- commen sense dictates that when more currency is chasing the same goods inflation will roar ahead.
In the short term this will create trading opportunities so be sure to manage your risks and that goes for local shares as well.
Focus on high quality dividend payers. Market should consolidate next week but hopefully the new PM will be KLSE positive as the uncertainty is now removed
What is the answer to the uncertainty, money printing, manipulation ? In a word gold.
On 25 April we will have our traders club at CIMB auditorium at 10 to 12 AM. Nigel Foo may give an outlook on local market and global indices.
In the afternoon of the 25th from 2 30 PM to 5 30, we plan a gold conference with some very valuable wealth protection info.
Futures Broker Martin will share a powerful gold trading system to time the gold futures market. We plan on having a fund manager from Deutsch Bank to present the outlook for gold mining shares and the benefits of placing some of your assets in a gold mining share unit trust.
We also plan on having a gold shop owner talk about the physical supply and demand picture of gold in Malaysia
Phillip Futures of Malaysia will share how to trade gold futures as they are licensed to do so. As we are holding this in a major hotel there will be a small cover charge for the gold conference.
Please let me know if you wish to attend the gold conference so we can plan.
Have a productive week ahead
Bill
9:03 am - KLCI is set for another sideway movement !
UMNO assembly is over ! Market bound to retrace lower !
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