Duit, I have fallen sick. I am only recovering now from a severe throat infection. Take it easy bro. Don't vomit blood ...hahaha... nice people like you should be enjoying life and collecting money from the stock market.

tsy88, Sorry for this late reply. Have been out of action due to a very bad throat infection. Yes, the durian season could be the culprit ...hahaha...

I am not in a position to offer any advice on our KLCI but I don't mind sharing my views. I would expect KLCI to trend sideways. Unless there is a major adverse event that impacts our economy fundamentally, I don't expect KLCI to spiral down into another bearish mode. On the flipside, there is also limited upsides to the KLCI.

External factors will continue to weigh in on our market's sentiment. The weak corporate US earnings has already put a damper in our market but then again, some stocks are in overbought position as well.

But if we look deeper beyond index linked stocks, I believe we can still find tradeable stocks. We are now in the corporate results season and companies with positive results will be an attraction. There have been suggestions of theme play stocks like water stocks and export related stocks. These would continue to be in play.

In export related stocks, we need to also bear in mind that these companies are also dependent on the economies of the countries that they export to. They may gain on the one hand on our weaker Ringgit, they may also lose on a weaker demand in the importing country. These are just factors to ponder upon when trading into these stocks.


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Posted by tsy88 > Jul 22, 2015 06:38 AM | Report Abuse

Profitman

Good morning. Would like to seek your advice on our KLCI and our market direction. What are your views pertaining to this? Some are bearish while others are optimistic !!

Thanking you in anticipation !!

Have a fruitful day ahead. Happy trading !!

Duit, so nice to see you bro. Good morning.

tsy, Dunknow, ariff, srash, johnny cash and all, Good Morning.

Duit, Skyhawk, Dunknow, Thanks. Happy Holidays!

To all Muslim friends here, Selamat Hari Raya. Drive safely. Cheers.

Connie, good afternoon. Came here to specially wish you Happy Holidays and travel safe.

TO ALL OUR MUSLIM FRIENDS,

WE AT TCB WISH YOU AND YOUR FAMILY,

SELAMAT HARI RAYA

PLEASE PLEASE DRIVE SAFELY!

TO ALL OTHERS, HAPPY HOLIDAY & PLEASE DRIVE SAFELY TOO.

tsy, Dunknow, ariff and all, Good Morning

Tsy, Dunknow, ariff and all, Good Morning.

With the resolution of the Greek saga and the Iran nuclear deal, at least there are some positive news on the international front. Domestically, we are still dogged by internal issues.

The Greek bailout resolution was not unexpected as the fallout from its failure is serious enough for all negotiating parties to act responsibly. The cost cutting measures in the bailout will not be enough to pull Greece out of the doldrums. She needs to look at ways to spur her economy and that requires medium to long term planning although privatization was included in the bailout package. Lets hope she recovers economically if not the Greece ordeal will come back to haunt us in the future.

With most of the key issues lifted, we can expect a corresponding uplift of fear from our market too. We can expect a greener pasture in our KLSE although many are still wary of the 1MDB issue. But with positive corporate results and projects, there will be stocks to watch out for and there will be stocks to punt.

Congratz Icon8888. I am sure a lot of people benefited from your writings. Great job.

Tsy, Dunknow, and all, Good afternoon and we wish all of you an enjoyable weekend.

Most European stock indices gapped up yesterday and the Dow too finished strongly in the green. I suppose everyone is optimistic of a Greek debt resolution. Such an outcome is desirable and the best way forward for all parties. Its a win-win solution. The negative implications of a Grexit is just too great for Europe and Greece to weather in the short term with social, political and economic implications. The Greece referendum could very well have been just be an internal political move to prove the legitimacy of Tsipras as PM that would give him the sole mandate to negotiate the bailout plan and to get it pass in Parliament without much hassle. Irregardless, the positive outcome might turn on the green lights all over our local bourse next week. Lets hope it is so. Cheers to all then.

tsy, Dunknow, connie and all, Good morning.

tsy, dunknow, matrix, thanks for those kind words. Humbled by them ...hehehe....

Connie, yes, its a piercing candle. Would be nice if the volume was higher.

By the way, you are too nice a person to dissect ...hahaha....

Connie, where's me lasagna ...hehehe.... Congratz on Mieco.

Good afternoon Connie

Thanks Connie. ...hahaha...

Connie my dear, good to see you. ..hahaha... thanks. Just my thoughts only. You always know how to make others happy ...hahaha....

tsy, Dunknow, r°Moi, and all, Good Morning.

tsy, Dunknow, China's scenario is very much similar to what our market here experienced in the 80's when everyone in the office and on the streets were into the stock market. Walk into any retail shop and you will see people staring at the Beriteks (can't even remember the spelling ...hahaha...), one of the source of keeping track of stock price movement with a delayed 15 mins relay, if I remember correctly.

The only difference is that China has a centrally controlled government while ours is not. So, the Chinese government in collaboration with companies and brokerage firms are now trying to manage the stock market. We will see if its effective. The Chinese market has been greatly inflated in my opinion. I am doubtful if this approach is a fruitful approach because there is a limit as to how much and how long they can support the market given the numerous external shocks that are present. Sometimes, allowing market forces to run its course may be a more viable option. Of course, many investors will be badly burnt in the process which is a sad option. Its really a catch 22 situation for the Chinese government.

Our internal issues pose a greater risk to our market as it carries political and economical repercussions. Throw in external shocks and we can have quite a volatile and at times, turbulent market scenario. Foreign selling is now becoming a norm in our market.

However, there will always be trading opportunities. We just need to spot it and trade with discipline.

tsy, Dunknow and all, Good morning.

tsy, yeah, its quite a Dow pull back, even more impressive than the previous day. Yes, I would think that a lot of the negative would have been factored in already as issues like Greece has been dragged on too long. US might not be affected so much by Grexit as their exposure is small by their standard and she should be able to cushion any fall out from Europe. Still, volatility in the stock markets will be the order of the day. Stay with your trading plan and you should be fine.

tsy, the market can be volatile. Yeah, trading in battered down good stocks is a good strategy especially when there is a sell down due to fear. I am always on the look out for such stocks. It offers a buying opportunity to move in but as you are also aware, it also comes with certain risk. Then again, as the saying goes, no risk no gain. But as long as we can manage the risk, it still offers an exciting trade. Cheers.

jeremiah, its immediate support is 1.40 with the next support levels at 1.36 and 1.25. These is no one best support price. If the sentiment towards the stock is weakened, even the best support price can be broken. Good luck and hope you have a very profitable trade from this.

tsy, Dunknow, jasonor and all, Good Morning

Surprisingly, Euro and Dow did not perform as bad as many had expected. In fact Dow recovered from its early fall of more than 150 points. This together with the China's supported increase in index, will remove quite a lot of fear from the market for the time being.

jeremiah1983,

Superlon:
Uptrend is still intact and is now under consolidation. Immediate support is at 1.40. If it breaks its immediate resistance of 1.45, it could resume its uptrend. This stock could be in for more consolidation in the short term. If you wish to trade it now, you may want to stop loss if 1.40 is violated.

tsy, Dunknow and all, Good Morning.

Greece no vote would instill a lot of fear into the market. The consequence of the vote will now depend on how EU, Greece and its creditors chose to move forward from hereon. The full extent of any fall out may only be clearer later depending on how the Greek situation evolve. To some traders, the sell down could be an opportunity to buy while others may prefer to keep cash and stay sideline. Whatever it is, chose the option that you are comfortable with base on your own risk profile.

tsy, Dunknow and all, Good morning

tsy, yes I agree with you - "buy when others are fearful". I always believe that one can trade in any market situation as long as you trade with discipline with your trading plan and can live with the risk. Then, the trader can also sleep well at night too ...hehehe....

tsy, dunknow, ariff, jasonor and all, Good Morning.

tsy/ariff/jasonor/dunknow, it is certainly rough times and it is not easy to spot potential winners nor bottom fish. It might be best to let the Greek debt default play out over the next week. The ramifications from the default can be grave and far reaching. Although I feel and hope that the IMF and EU will still try to resolve it even past the deadline. The Greek problem piles on to the other internal problems that we are currently facing.

If you intend to bottom fish, do monitor the indicators closely and trade cautiously. You may want to tighten your stop loss and target prices during times like these. The fear overhang is great. So, the slightest negative news may trigger a sell down. And as we have always advocated, do not average down. You will probably notice that cheap can become cheaper.

But in stocks, there is no such thing as cheap if you do not compare the price relative to the stock valuation. Also bearing in mind that in a bearish market like this, stock valuation may mean little if you are looking at it for guidance to bottom fish as the fear sentiment is just too great at the moment and rationality gets thrown out of the window.

Happy trading and trade cautiously.

tsy, Dunknow, jasonor and all, Good afternoon

Jasonor, the KLCI continued its downtrend and it is not helped by negative factors like the potential Greek debt default and other on going internal issues. There will still be stocks to trade and spotting them is a challenge.

tsy, Dunknow, ariff7996 and all, Good Morning

tsy, ...hahaha...you made so much money you still thought it was Tuesday today ..hahaha... juz kidding yah.

lctay81,

KNM:
Broke out from its downtrend line today when it crossed 0.60 with volume. If this momentum continues, it should be challenging the resistance at 0.685 and becomes bullish. Immediate support is at 0.60/0.605.

Connie, your wave counting is already very impressive to me ...hahaha....

Connie and all, Good morning.

Connie, the thing that I am cautious about in LCTH is the relatively low volume on 22/6 supporting the price hike and the slowing momentum. But I could be wrong. Cheers.

tsy, Dunknow, gray and all, Good Morning. I think a negative Fitch rating has been expected by many and probably could have been factored into the market somewhat. So, the impact may not be great.

tsy, Congratulations. That is a very very good trade on Ifcamsc wa. Well done. It feels good when we are able to sell high buy low ...hahaha.... and we do get a huge boost of satisfaction. Well done!

Connie, ..hahaha... you are so humble. To me LCTH is breaking out from its short term bearish price channel. I don't see it as an inverted H&S. Nevertheless, it is FREAKING out with huge volume. ..hahaha... but as always, i usually wait for 3 trading days for confirmation of the breakout although many indicators issued a bullish signal. By the way, which part of the wave is LCTH in? Thx.

...hahaha...Connie, I thought you fell ill or something like that. Ok, promise you a pinky song later today. Go create a FB account lah. Yah, I miss all the nice people here too.

Connie, what happened to you?

Connie and all, Good Morning

tsy, Dunknow, ariff7966, sunflower22 and all, Good Morning.

tsy, Ifcamsc has been impressive in its rebound.Congratulations. I think there could be some more upside but as always, we can never predict the market, so we can only be cautious. Carepls is a good buy. It broke its resistance of 0.775 yesterday with volume and the dark cloud of 8/6 has been totally lifted ....hahaha... It is bullish at the moment. Should be a good trade for you. Hope you make good money on this.

Hi tsy, Dunknow, sunflower22, jasonor and all, Hope all of you took advantage of the green market today.

Connie, juz want to wish you an enjoyable weekend. ...hehehe....

Connie, Thx

tsy/ duit , well, i did not benefit from the Ifcamsc rebound either. So, we are on the same boat. But the Ifcamsc swing does illustrate the roller coaster emotions and psychology of trading.

Duit, thank you, I am very "ho" ...hahaha....

tsy, thanks for your kind words. .hahaha... Yeah, Ifcamsc rebounded very strongly. I hope you managed to take advantage of the rebound.

tsy, Dunknow and all, Good afternoon. And to all our Muslim friends, Selamat Berpuasa.

duit, work is busy as usual. But better be busy than free ...hahaha.... Yes, will extend your regards to them. In fact they do follow this thread very closely too. Hope you are sitting on many winning stocks. Many people will be very happy with Ifcamsc these 2 days with its strong rebound.

tsy, Dunknow, jasonor and all, Good afternoon ...hahaha.... Hope everyone makes money. Unlikely the US Fed will raise interest rate this month although an increase in September is a possibility.

Dear all, Good Morning. Many stocks are on a rebound as most were oversold yesterday.

Duit, thank you so much for helping out on the index and on Scomi. Appreciate it bro.

Jasonor, Duit is spot on. The KLCI index is not reflective of the whole market.