Dear Traders,
Almost every stock analyst, financial news reporter, broker in town expects the KLSE and world markets to have a sizable correction in the short term and then a recovery later down the road.
For this reason it probably won't happen. When the crowd is focused on a scenario something else usually happens. This is an odds play and if you are long you still have to manage your risks and because of the extreme caution of the crowd the odds favor the upside.
Given the monumental efforts of the G 20 governments to thaw the credit markets by massively inflating the monitary base and pegging short term interest rates near zero percent, combined with China's 1.2 trillion USD massive stimulus, the odds favor recovery in the commodity markets with the DJCI climbing 25 % higher towards 140 from todays level of 113 in the months ahead.
The exchange traded fund for the DJCI, in New York is listed under symbol DJP for those with Ameritrade accounts.
Risk 10 % from your entry @ 102 under support.
Upcoming events
- Traders Club with gold outlook and KLSE outlook by Nigel Foo, CIMB technical analyst outlook on 25 April also at CIMB auditorium. No charge for graduates
-Gold Conference on Sun 10 May at Armada Hotel PJ from 2 to 5 PM. Fund Manager from Deutsch Bank to give the gold outlook. Cover charge of RM 25
Continue to accumulate quality shares and come to our events to know what shares to buy and what are the risk, profit objective points.
Regards
Bill
Monday, April 20, 2009
Sunday, April 19, 2009
9:42 am - I was on leave on Friday for a relative's funeral.
Good guess I must say ! UEMLand did test above Rm1.00 and closed at rm0.99.
Thursday, April 16, 2009
9:06 am - KLCI gap up above 200 MA.
This is a significant move ! Over 200 MA and close above 924 today is deemed as bullish trend by institution.
Wednesday, April 15, 2009
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