Posted by Bruce88 > 2014-10-11 16:08 | Report Abuse

Could be a market pullback similar to that in Y2011, dropped about 300pts.

Posted by matakuda > 2014-10-11 16:30 | Report Abuse

New knowledge for me. Thanks Pauline

Posted by fortunebullz > 2014-10-11 16:48 | Report Abuse

This is just a deep correction which we need! But this is also the last 2 rallies before the market kaput!

Posted by dextronium > 2014-10-11 16:48 | Report Abuse

Thanks for the write up.

Posted by matakuda > 2014-10-11 17:30 | Report Abuse

Fortunebullz, siapa yang kaput? Awak ke market? Mintak pencerahan

Posted by AhMoi > 2014-10-11 17:32 | Report Abuse

; )

Posted by AhMoi > 2014-10-11 17:38 | Report Abuse

Thought more than 10% baru saja Correction...

Below that is your average everyday fluctuations...

But anyway nampak baru drop below 5% now pun ramai sakit kat pocket dan hati jua dah tak terhingga...

Posted by newklear > 2014-10-11 20:06 | Report Abuse

Dear Pauline,

I agree with your comments with respect the lunar eclipse and human emotions / behavior. 65% of the human body is comprised of water. Gravitational forces affect our daily lives, evidently observed in high & low tides. Since the human body revolves around water, by no means we could be affected as well. Numerous studies have reported the lunar effect on animals and for humans : fear, aggression, reproductive behaviour/desire etc...I had a contact who told me once that the French police force generally observe a peak in criminal cases during full moon. Believe??

Back to the market, we experienced a heavy sell off in global stocks on the 28th February 2007 (originating in China and then around the globe) for 3 consecutive days. Coincidentally, a total lunar eclipse took place on the 3rd March 2007. Any correlations, it's your turn to figure it out.

However, I am VERY convinced that you forgot to mention 'the mother of all storm' reason for this perfect storm. We have Ebola, political uncertainty in eastern Europe & Mid-East, deflation in Europe (sharp drop in French & German exports), slowing Chinese economy (& BRICS - Brazil, Russia, India, China, S.Africa) AND THE END OF THE QE THIS MTH. Cheap money from the QE is now being pull back from global markets. Significant confusion from the FED meeting minutes provides additional uncertainty. Some understood that the FED will be keeping the low interest rates for a significant amount of time until the US economy further gathers steam. But a non-voting FED official signalled that this was rather a 'misinterpretation'....until this clears out, we will see a further downside in equities which is rather NORMAL with respect to A LONG DUE MARKET CORRECTION.

Nevertheless, EU is currently experiencing stagnant growth (turning negative) and deflation. ECB COULD BE ACTING SOONER THAT YOU THINK. They will start their OWN SYSTEMATIC QE soon before things turn uglier !! Previous attempts were dedicated to Germany's resistance and now that situations are getting uglier in Germany (significant drop in German exports - never seen before since 2009), Mario from the ECB is working on the prospects. A HIGH IMPACT ECB QE?? Let's wait.........and see.

This is a PERFECT storm with all the ingredients well matched together with the QE withdrawal being THE MOTHER INGREDIENT (Ajinomoto), i.e. significant foreign fund outflows while local institutional investors stayed on the sideline. Dampening growth sentiments have taken its toll on crude prices, whereby the US is now self sustainable with their own US shale production and decreasing global demand. Sell off in oil & gas counters is also a major culprit for the rout...

With the US FED gone and ECB drafting up plans for a QE, it is worthwhile to observe whether Asian central banks will trigger their own QE after that or perhaps much sooner than you would think, e.g. China. If that happens, a currency war is imminent with the USD being the ultimate winner. BNM can sure be happy sitting on billions of USD reserves..:)

Upcoming events:
1) Actions from the ECB on a more effective QE?? Cheap money again??
2) Currency war?? Flooding of Chinese cash??

Cheers,
NK

Posted by bravoUp > 2014-10-11 20:17 | Report Abuse

US mkt drop because too much short selling. Anyone without holding share can sell with the hope to buy lower. Our market is different. You need to have company X shares before you can sell. Thus downside will be limited and this provide buying opportunity for selective counters.

Posted by PureBULL . > 2014-10-12 00:49 | Report Abuse

Dear pauline_yong n all,
In times like this n at all times, it is best advice to always refer to world best of the best Guru.
He is so kind to put it simply in minimum words n comma :

G SOROS -
"Economic history is a never-ending series of
episodes based on falsehood and lies, not truths.
It represents the path to big money.
The object is to recognize the trend whose premise is false,
ride that trend, and step off before it is discredited"

Here too, http://klse.i3investor.com/servlets/cube/post/purebull.jsp

Posted by stockoperator > 2014-10-12 11:38 | Report Abuse

even it is 20% correction into bear market, it depends how long we stay there. It can be V shape rebound Or years of Bear market.

In stock investment, we Only worry about long years of Bear market.Years of Bear market will be like lost generation and investment return will be low and sub-par for many years.

Posted by stockoperator > 2014-10-12 14:06 | Report Abuse

End of day it is your stock pick ya.

To make money, it is your stock picks. Overvalue or Undervalue, it is stock picks. Average down or Not, it is your stock picks. Long term investment or Not, it is your stock picks. Cash or keep investing, it is your stock picks.

Posted by 1007lsl > 2014-10-12 14:46 | Report Abuse

A market correction is a bear market always,baby bear,mother bear or grandmother bear.

Posted by miapancho > 2014-10-12 15:15 | Report Abuse

finishing of the year sure will go higher,,,now it is better to cool of overheated markets,,just by pumping in some negative news.. when markets are on uptrend any negative news won t be look at..but when to cool off,,overheated market all the negative news will be look upon.. MAIN IDEA HERE IS TO COOL OF OVERHEATED MARKETS.. I MEAN MARKETS THAT ARE TRADING AT OVERVALUE LEVELS... THIS IS HEALTHY FOR MARKETS..WE STILL HAVE NOVEMBER N DECEMBER...SO BETTER FOR CORRECTION TO TAKE PLACE NOW..IT S MY OPPINION

Posted by 1007lsl > 2014-10-12 15:25 | Report Abuse

A 10-15% correction is always healthy for a next push.

Posted by Ring > 2014-10-12 15:33 | Report Abuse

X
"In determining the pace at which our monetary accommodation is removed, we will, as always, be paying close attention to the path of the rest of the global economy and its significant consequences for U.S. economic prospects."

Large developing nations like India and Brazil have been concerned a rise in U.S. rates could suck investment away from their economies, just as they earlier criticized the Fed's bond-buying stimulus as a "currency war" that caused a fast increase in their currency values.

Fischer said in the keynote IMF address that the Fed's crisis programs, which pumped trillions of dollars into global markets, have on the whole benefited the rest of the world.

"The net effect on foreign economies appears to be both modest in magnitude and most likely positive, on net, for most countries," he said.

In addition, he said U.S. central bank officials have given national governments and investors plenty of time and clear signals to prepare for a shift in policy.

The Fed is "going to great lengths to communicate policy intentions," Fisher said. "Markets should not be greatly surprised by either the timing or the pace of normalisation." - Reuters
12/10/2014 14:34

Posted by uncle_tt > 2014-10-12 18:02 | Report Abuse

ANOTHER GOOD ARTICLE TO SHARE, TQ

Posted by sunztzhe > 2014-10-12 18:50 | Report Abuse

The drop in price of crude oil had spooked the market n created great uncertainty on the global stock markets. There is new evidence that the drop in crude oil prices is being manipulated to punish Russia. The key question to ask are
- will global consumption of energy decrease or increase in the future?
- can the supply of unconventional shale oil have a sustained significant impact on future crude oil supply ?
The global demand for energy produced from crude oil n gas will continue to grow as more n more emerging market countries in former Soviet republics, Asia n South America aspires for US n Western European lifestyle. This can only mean that the demand for energy will increase in the future. Major oilfields in the world r facing declining production n many have resorted to enhanced oil recovery to try to maintain production volume.
Unconventional shale oil n gas accounts for 2%-3% of world supply. The unconventional shale oil n gas has maximum production during the first year n thereafter the production tails off at an exponential rate where the maximum life of the shale field is 10 years. It may even be shorter.USA is now a gas exporter but how long can USA continue to export unconventional gas? The export may not be sustainable over a long time period as shale oil n gas production will be unreliable.

So the key question to ask is how long can the Price of crude oil remain at around USD 90 given that the people in the emerging economies in former Soviet republics, Asia, South America aspire for US n European lifestyle which consumes high energy on a per capita basis? As energy consumption grows in the future, the future demand for crude oil n gas may even exceed the future supply.

Posted by ks55 > 2014-10-12 23:07 | Report Abuse

Investment clock is at 1205hr. What else do you expect? Want more indicators to confirm? It will be 1500hr then. Run for your live now!