Never despair...this is the game of the big boys...they sell the blue chips n index-linked stocks. This way, they scare retail players with the opportunity to collect again at lower levels. GE is just an excuse for the selldown. Be smart..bargain hunt and bottom fish, and hold if u have funds. Don't panic sell. That would make matters worse. U know and we all know that mkt will come back again after GE.
The market had already been on a general downtrend after enjoying a rally that started in November which saw a new peak of 1,699.68 on Jan 4. After that, profit-taking had ensued.
“The selling has become more apparent today (yesterday),” Pong Teng Siew, head of research at Inter-Pacific Securities Sdn Bhd, said when contacted.
A technical analyst said a combination of weak sentiment due to the lack of fresh catalysts and some political uncertainty, coupled with sell signals as well as a recent breakdown in the index's uptrend channel, would likely keep the market in a consolidation phase in the immediate term.
could it be in this way? I m not sure,,, Big boys sell to cause price lower. Local funds need to support & bring up the price bit higher to boost market confident. Then foreign funds when see higher price, they sell again. One needs to escape & another needs to create market confident...hehe,,they are fighting with each other....
CIMB Equities Research said the KLCI was under pressure on Monday, falling 40.8 points or 2.4% to close at 1,635.
"There was quite a bit of technical damage done and this could be a major source of concern if the decline continues over the next few weeks," said the research house.
CIMB Research said the weekly chart shows the support trendline at 1,610 with the next important support levels at the recent lows of 1,590 and 1,526.
"Failure to hold above these support levels could be a concern. In addition, the weekly technical indicators are negative, with MACD showing negative divergence signs and RSI not able to overcome its resistance trendline, which is usually a sign of more consolidation in the medium term," said the research house.
Desmond.....a bit correction.....i'm sitting in front of one of the local fund manager.....they are keep on sellinglah....they are more eager to sell as well!!!
Posted by nubhan . > Jan 22, 2013 09:36 AM | Report Abuse
parliment dissolve on 20th Feb, election end of march. So many days of volatility.
u may be rite nubhan...that's what I'm anticipating...GE in March. As in the past, mkt will pick up after GE. So, be smart. Don't treat the selloff as bad...that's the time to bottom fish. Cheap sale ma
Hello talkpkc.....I love yr statement but you are right partially.....not applicable to blue chip counters....either in over valuation or entangled with the political risk!!!!
Think Market will stabilize between 1600 - 1630..... once stabilized and unloading finish... another sell down will happen 1500, the 2nd auspicious number for snake year!!
yes bursabull trader. big boy selling systematically so can have good price for them . we jz thought everything over n jump in to buy . they will happy go to bank deposit the money n transfer back to other place invest
talk2pck ... i think datuk want to said follow the big biy when they sapu at bottom . dont lock n stuck ur money in something not promising will going up. investing share not sure win . if u felt A ahare is good u buy n hold ... when klci rebounce , it still stay down n going down
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by JASON80 > 2013-01-22 08:47 | Report Abuse
WILL TODAY HAVE A BIG DROP ? THINK SO AS EVERYONE PANIC . LESS BUYER MORE SELLER