HSI : Looking at 20,500 level and should 20k level breached, bye-bye to bull-market?

We are in the grip of BEAR ... with DOW down 512 points and HSI continues to do lower, we(KLCI) will see HUGE correction soon. Crude oil going below USD90. It is the FEAR in play ... staying sideline advised.

Are you still bullish as most of the analysts GIVEN us that picture? Or do you think it ARE in bear market now and each short rebound will be the time for us to trim/cut off our holdings? That is in everyone's mind.

Technically, IT IS BEARISH.

Fear on the Street: Inside the Stock Sell-Off

By Jeff Macke

Stocks posted a severe drop today, with the Dow Jones Industrial Average falling 4.3% and the Nasdaq crumbling over 5%.

By the end of the day there were few places left to hide. Gold, silver, crude and yields on Treasuries all fell sharply as traders looked for safety and were met by nothing but falling prices. Over the last 10 trading days stocks have lost more than 10%, the traditional definition of a market correction.

Today's selling started in Europe and picked up steam as American investors, already twitchy in the wake of the debt ceiling debacle, suddenly preferred cash over all other assets. The selling began overseas, but we have more than our share of problems in the U.S. as well.

There's a growing realization among even the most optimistic investors that the United States is entering a new recession -- a dreaded "double-dip." Adding to the pain is the sense that the government and Federal Reserve are out of both ideas and ways to stimulate the economy. Corporate America is sitting on record amounts of cash but is refusing to make new investments with so little end demand for its products. Consumers and corporations are hoarding cash, and the economy appears to be seizing. The debt ceiling debate was a fiasco, snuffing any remaining confidence traders had for help from Washington, D.C.

The bottom line is traders are becoming convinced that we're facing a prolonged and severe recession, and there's nothing any government on Earth can do to stop it. In that context, selling stocks or "reducing exposure" as they say on Wall Street, is quite rational.

So what should people at home do? Avoid panic, for starters. The swiftness of this correction is unusual, but a 10% drop is not. Just last summer stocks fell 17% on concerns not unlike those we face today. If you're an investor who can't sleep tonight, you're probably too exposed to stocks. Sell until you can sleep. Nobody ever made good financial decisions scared or tired.

Today was the first sign of fear stocks have seen in a year. To paraphrase Churchill, that may not be the beginning of the end of the selling, but it's the end of the beginning. It's extremely unlikely we're going to see good economic news anytime soon. A terrible jobs number tomorrow is now assumed, and a good one will be considered either incorrect or flat-out fraudulent.

Take hope for a quick economic recovery out of the equation and ask yourself this: If you woke up tomorrow and stocks were set to open down another 1,000 points on the Dow, would you buy or sell? Whatever your answer is, you'd be well served to consider doing it a little bit at a time now.

Trying to "call the bottom" by going all in at once is a fool's game. Be patient, be calm and tune out the panic. In a market this volatile, prudence is the only rational strategy available.

TEH : I am going into some put-warrants in HKSE. See if that works out. Hmm ...

These are more reasons for novices to start to learn trading/investing at the moment. By the time these novices leanrt some basics ... they could be more confident to move in when markets reverses. Perhaps this correction might take months till end of the year ... but wake me up when September ends?

Green Day- Wake Me Up When September Ends





8.50 AM : Brace yourself for a dive ... see if KLCI will go down 20+ points as most in reds now? see if there is PANIC selling and grab some counters I like. Just place the order at very low levels(at support) and see if it is done. Ouch.

.Gamuda : Queue at 3.35 not done.

HSI down 1000 points!!

Mayhem at Asian markets, KLCI below 1,530

Written by Surin Murugiah of theedgemalaysia.com
Friday, 05 August 2011 10:31

KUALA LUMPUR: The FBM KLCI tumbled more than 37 points in early trade on Friday, Aug 5 before re-gaining some lost ground at mid-morning, following the steep overnight crash at Wall Street.

Asian markets, spooked by the selloff at Wall Street that saw both the Dow Jones and S&P 500 fall more than 4% each and the Nasdaq by 5%, followed suit, with the Hang Seng Index tumbling more than 4.8%.

The FBM KLCI lost 18.10 points to 1,528.79 at 10am, as key blue chips slumped. Market breadth was negative with losers thumping gainers by 751 to 20, while 76 counters traded unchaged.

At the regional markets, Hong Kong's Hang Seng Index fell 4.84% to 20,825.17, Taiwan's Taiex lost 5.09% to 7,894.27, Japan's Nikkei 225 lost 3.36% to 9,334.26, South Korea's Kospi down 3.82% to 1,941.40, Singapore's Straits Times Index lost 2.96% to 3,105.08 and the Shanghai Composite Index fell 2.27% to 2,623.16.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients said that due to the US markets' crash last night, there would be some volatile trading activities in the local bourse today.

'Some very heavy profit-taking and liquidation activities will emerge later to depress the markets' rebound from its opening 'gap down' low.

'We see a longer term decline for the local and foreign indices. Sell on rallies and keep cash for the crash,' he said.

Meanwhile, MIDF Research in a note Aug 5 said markets in the region in general and locally in particular should be bracing for a rough trading session today.

'It will probably get worse in the afternoon when Europe opens,' it said.

Note : None of the trades written in this blog is REAL.

Waterfalls : Technically critical

UemLand : Reaching a critical support at 2.38 today.

Genting : At critical level of 10.48 today.
spam e-mail #2 : Good Day

Good Day to you,

I am Mr. Shinga Shapashi, Chief Operating Officer with my Bank, This letter must come to you as a big surprise, but only a day people meet and become friends and business partners.

An Iraqi Foreign Oil consultant/contractor Mr. Thomas Stone made a fixed deposit with our bank in 2003, valued at US$16.500, 000.00.million.

He was among the dead victims of island of Java magnitude 6.2 earthquake, Indonesia, just outside the city of Bantul. on May 27, 2006.

Mr. Thomas stone did not mention any Next of Kin/Heir when the account was opened, and am his account officer, right now our bank did not know about Mr. Thomas Stone death, and if they happen to know my Bank Directors will take the funds for their personal use.

I am now seeking your co-operation to present you as Next of Kin to the account and my bank headquarters will release the money to you under a legitimate arrangement. so I am suggesting we share the fund, 40% for you while 55% of the fund will remain for me after successful transfer of the fund to your position until I join you there while the remaining 5% has been mapped out cover any expenses that might be involved. I want to do this deal is because in 4 months time i will resign from the Bank and start up my own company.

If you are interested to work with me, kindly send to me the following details;

(1) Your direct mobile/fax number.
(2) Your full name and country resident address.
(3) Your private E-mail address.
(4) Your Age
(5) Your Occupation

As soon as i receive your response with following information, I will then send you form to fill and send to the Bank legal department for the release of the money to your nominated account without wasting any time.

I will be waiting for your response.

Regards

Mr.Shinga Shapashi.
TEH