Bursa Malaysia Stock Watch
FBM KLCI...Here Comes The Tailwind Rally, But...
kltrader
Publish date: Sat, 13 Mar 2010, 01:09 PM
kltrader
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The Tiger roared since the beginning of the lunar new year. This climb, with new highs, means that the market has now entered into its tailwind rally i.e. Wave 5.
In my earlier optimism at the end of last year, I was expecting a powerful Wave 5 rally to finish off this remarkable rally we had since March 2009.
However, the dip in January had put off many investors and hence we will need some time to observe the market actions, on this Wave 5, to determine if this tiger bears the character of the King of the Jungle or a mere tamed-cat.
Yes, there could be money to be made; however I doubt it's easy money this time around. Be very careful...
All said, while we may see some optimism on this rally, it also means we are ticking closer to the end of this run on the flipside. V shape recovery or double dip? It's really anybody's guess.
My advice to investors is to manage your risk rather than profits as it's time like this that smart money would unwind their positions, taking action based on longer term earnings outlook than short term optimism.
Remember that stock investment is ultimately a "Greater Fool" game and we do not want to be the Greatest Fools when the market is at high price levels. Also, let's not forget about the long-forgotten correction that seems "never come".
For now, it's best to see how the market reacts after the expected gap filling with a likely downside to 1,300.
In my earlier optimism at the end of last year, I was expecting a powerful Wave 5 rally to finish off this remarkable rally we had since March 2009.
However, the dip in January had put off many investors and hence we will need some time to observe the market actions, on this Wave 5, to determine if this tiger bears the character of the King of the Jungle or a mere tamed-cat.
Yes, there could be money to be made; however I doubt it's easy money this time around. Be very careful...
All said, while we may see some optimism on this rally, it also means we are ticking closer to the end of this run on the flipside. V shape recovery or double dip? It's really anybody's guess.
My advice to investors is to manage your risk rather than profits as it's time like this that smart money would unwind their positions, taking action based on longer term earnings outlook than short term optimism.
Remember that stock investment is ultimately a "Greater Fool" game and we do not want to be the Greatest Fools when the market is at high price levels. Also, let's not forget about the long-forgotten correction that seems "never come".
For now, it's best to see how the market reacts after the expected gap filling with a likely downside to 1,300.
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