Weekly chart

KLCI weekly chart, from the peak nearing 1600, where many were bullish and BUY BUY BUY calls could be seen everywhere and broker houses were busy ungrading KLCI to higher level and NO ONE actually telling us as KLCI going below 1400 level?

35% of those voted in my poll(very small number of the readers bother to voice their opinions. For those voted, thanks) took the below 1400 level for KLCI by the end of 2011. Now, it is interesting to note that 60% of them initially voted for BULL views ... but as I opened the poll till end of August, and market continues to go lower, plus our friendly broker-houses coming out in unison, SELL SELL SELL ... and downgrading their KLCI outlook into a gloomy situation. ALL in the short 2-3 months time!! Wow ...

What I do like about technical-analysis is CHARTS DONT LIE. We use the charts, the indicators to check on possible path of a stock. Due to frequent failure of signals(due to short-term indicators used), technical analysis is NOT for all. Some people might even want to ridicule the use of TA. But the smart and savvy ones, the informed and wise one knows that besides the good old fundamental analysis, adding technical analysis will give us the edge. It could tell us if we are peaking or bottoming. By using a longer time frame, an investor could decide if they should take profits on their stocks as market is reversing.

Never go against market force ... this bear rally might be larger than expected. We dont need to predict such ... let the experts and analysts do theor job. Let those CNBC or Bloomberg talk-show do their talking. We should just focus on our stocks and since the dive, many have cracked those supports and leg-one down done.

Are you still bullish(ETP, MRT, GE-rally .. etc) and believe we could see 1600 again? Then, it is time to buy hugely in many stocks, those dived and lagging behind.

Hence, I will like to see if market will really collapse or is this merely a correction?

TEH