The Malaysia stock market is hot this year.  The index went from 1454 at FYE2023, to 1611, giving a quick gain of 10.8% returns in just over 4.5 months!  With fast gains like this, is it peaking and should you sell?

If you just look at daily candle charts like below, you will think that price is hitting the horizontal resistance near 1615 say and you'd be tempted to liquidate your holdings, thinking price has hit resistance and the next move is down.

That may be true for traders, but what about investors?

As usual, monthly candle charts rules!

A few key observations:

1. Over the past 40 years, KLCI index is on a long term uptrend, evidenced by that rising uptrend line.

2. Since 2018 peak, KLCI has been on a downtrend, causing many institutional and other investors thinking that Malaysia equity returns are hopeless.  I believe we've seen maximum pessimism on Malaysia stock market.  Which means over the next few years, the path of least resistance is up and not down.  

3. Since 2018 peak, KLCI has broken out from that 5 year downtrend line.  This is bullish.

4. My expectation is that the next target over the next year, two or more is the 1900 level.  

Price never moves in a straight line up.  They zig and zag.  My belief is upwards.   

In a bull market, as the great speculator Jesse Livermore is often quoted:

It never was my thinking that made the big money for me. It always was my sitting.

With a full position, at this juncture, over the next few years, odds are don't be active.  
- Instead, sit tight. 
- Don't overthink. 
- Do nothing is best during bull markets when bias is on the upside. 
- Ignore short term price down gyrations. 
- Your portfolio is now on auto-pilot.
- Your regular dividends will do the profit taking for you naturally without you having to worry.