Posted by andychucky28 > 2013-05-23 15:02 | Report Abuse

Already said. If barang naik wins, market is heading no way.

Posted by millionaire > 2013-05-23 15:03 | Report Abuse

as expected, always invest based on fundamental, smile :-)

Posted by usry > 2013-05-23 15:05 | Report Abuse

our market too high already.. they just wait ikan bilis like us to enter the market before they 'dump' the stock and 'trap' us inside ..

Posted by millionaire > 2013-05-23 15:06 | Report Abuse

foreign funds start selling, going to kill all ikan bilis.....

Posted by midastouch > 2013-05-23 15:27 | Report Abuse

If you are using your own money than there is no cause for concern. Shut your computer down and enjoy your holidays. Things will be back to normal middle of next week. If you are on margin trading, bite the bullet and cut your loss.

Posted by usry > 2013-05-23 15:30 | Report Abuse

agree.. now is panic selling.. just wait and see..

Posted by datuk > 2013-05-23 15:30 | Report Abuse

you must be a smart ikan iblis lor.....pan chu eat lau hu !

Posted by kaede85 > 2013-05-23 15:30 | Report Abuse

TOPIX slump is one of the main reasons too

Posted by datuk > 2013-05-23 15:33 | Report Abuse

Topix is not slump!!!! Insteas.....sudah naik too much and at auto bun speed!!!! I think it's realistic to expect Topix coming down ! I think the downtrun is still at early stage....more too comes!

Posted by kaede85 > 2013-05-23 16:04 | Report Abuse

http://www.bloomberg.com/quote/TPX:IND

Posted by midastouch > 2013-05-23 16:07 | Report Abuse

Yes TOPIX, Japanese Stocks Plunge Most Since March 2011. Abenomics pushed the stock market up to soon too fast. Major correction is on the way.

Posted by yahoo80 > 2013-05-23 19:37 | Report Abuse

well... even playing using own money , we should cut loss as we do not know if the stock we bought drop till what price . and if recover to the price we bought , need to wait how long ? better cut loss n dont to over confident as market not control by only ourself but many players

Posted by iafx > 2013-05-23 21:03 | Report Abuse

reading back the fed hearing, it looks like stimulus efforts r to continue but MAY scale down as early as june, depends on certain criteria not specified, suggeste by few senior officers. believe investors r magnifying the "may" thing. note U. S properties market is improving marginally till date. smoking gun or... ? let's watch closely for U. S performance today and tomorrow

Posted by iafx > 2013-05-23 21:15 | Report Abuse

" Fed's Mixed Message: The Federal Reserve sent a "garbled message" about the fate of its QE3 program on Wednesday. First, Chairman Ben Bernanke endorsed ongoing stimulus efforts while testifying at a congressional hearing, though he did reveal the central bank could begin to slow down bond-buying in its "next few meetings," labor market conditions permitting. Then, just hours later, April meeting minutes revealed some Fed officials were hoping to pare down the program as early as June. Markets spiked, and then tumbled as a result of the information, illustrating "the communications challenge facing the Fed as it ponders the next steps for its historic stimulus efforts," the Washington Post reports. Now that the dust has settled, some analysts are predicting the slowdown — which, Bernanke noted was different than a complete wind-down of the program, since the Fed could always raise purchases if the economic outlook worsens — will begin in a few months, most likely around September."

Posted by midastouch > 2013-05-24 11:01 | Report Abuse

Ben Bernanke's statement was made public last night and when I read the papers this morning, what really struck me was his statement that the Fed's current monetary policy is providing significant benefits and that "a premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further."

How do you think we should interpret Ben Bernanke's statement?

There is not going to be any change in the Fed's monetary policy, not until unemployment falls meaningfully and inflation is where they want it to be. So, the environment of low interest rates will persist and this bodes well for the stock market.

Now, with the declines in the stock market yesterday, is the bear back? Well, is it? Naturally, no one knows.

What I know and would like to remind everyone about is that prices do not go up or down in a straight line. They climb a wall of worries and go down a river of hope. The uptrend is still pretty much intact and pull backs are only normal. Today is another pull back and the worries are China's weaker data and, apparently, Ben Bernanke's statement.

With lower prices, now, we see better value. Of course, this is assuming that there are no material changes which will adversely affect our investments. If the fundamentals are unchanged, a good investment at a lower price offers greater value for money. Then, look at the technicals. If these are benign, we should be buying on weakness.

In a nutshell, if the fundamentals remain good and if the technicals are benign, pull backs are buying opportunities.

So, what should we do? Prepare a list of the stocks we are interested in. Determine what are the prices we would like to buy at as well as the reasons backing those decisions. Remember, if we cannot convince ourselves why we are buying at a certain price, we really don't have a good reason to be buying.

Have a plan and follow the plan.

Posted by iafx > 2013-05-24 11:16 | Report Abuse

yesterday nothing much from U.S, S&P shaded -4.84, DJI -12.67, NASDAQ -3.88, Oil -0.06, Gold +1.4

at this point of time, NIKKEI +383.92

Posted by Ooi Teik Bee > 2013-05-24 11:20 | Report Abuse

Dear Midastouch,

A very good article you wrote.

It is very important to have a trading plan and follow it rigidly. Do your homework before you invest. No short cut, only hard work will help you to make money in stock market.

Thank you.

Posted by iafx > 2013-05-24 14:21 | Report Abuse

nikkei +128.47 hsi -12.73

Posted by midastouch > 2013-05-24 14:28 | Report Abuse

Thanks iafx for the latest updates. It seems normalcy is returning to the markets.

Posted by iafx > 2013-05-24 14:32 | Report Abuse

hmmm... let's c how European follow first

Posted by iafx > 2013-05-24 22:06 | Report Abuse

hopefully fed will shade some lights later, major markets in red... https://finance.yahoo.com

Posted by alenac > 2013-05-24 22:22 | Report Abuse

World stocks will end their run as in the past when US interest rates begin to climb. Funds will move into US market and abandoning other markets to support the US economy. The question is when? Can it be the first Q of 2014 or sooner?

Posted by midastouch > 2013-05-26 00:56 | Report Abuse

This is what we need to look out for. The moment funds go back to US as a result of higher interest, local market will suffer from foreigner pull out. Index stocks will be hit badly.

Posted by iafx > 2013-05-26 11:48 | Report Abuse

so far, judging from 1YTD data, major markets have been seen buying on dip, rather than staying sideline or switch to other instrument. given current EU, China economy status, looks unlikely the global economy can walk away from stimulus anytime soon.

note on Friday both dji and nikkei both ended green, while other markets mostly in red.

close range bouncing until further clarity/catalyst arise :)

Posted by Feimaw > 2013-05-26 11:51 | Report Abuse

But if we look at Malaysia vs Spore exchange rate, it is at lowest now. Could it be most bigger bulk of current FDI coming from Spore instead of US?

Posted by iafx > 2013-05-26 11:53 | Report Abuse

FDI is not driven by currency rate

Posted by Feimaw > 2013-05-26 11:56 | Report Abuse

Yes, it is. Just look at Malaysia vs Us dollar. Whenever high decline of klse, USD went up vs Msia ringgit. Similarly the opposite. Pull out to change back ringgit to dollar

Posted by iafx > 2013-05-26 12:04 | Report Abuse

do u mean foreign direct investment (fdi)? this is business/production driven; not currency, definitely not share market

Posted by tonylim > 2013-05-26 12:15 | Report Abuse

Yes. Feiwaw there is a correlation in the rm exchaange rate against the green back. I was surprised at the spot rate yesterday.

Posted by pillay15 > 2013-05-26 12:32 | Report Abuse

All the stockbroking firms will tell you it is 80/20.That is what Pareto said long time ago for other matters. It now applies to the market. 80% of the players in our market are institutional investors. Only 20% are retail investors like you and me.The shareholders in our local companies range from 1,000 to 21,000. Averaging at about 5,000 for 1,200 counters on the KlSE, we ,the retail investors are keeping a majority of the remisers/dealers in business.A good advice has been given by Midastouch. Study the market and do your homework.At the same time never write off those that have fallen. People fall down only to wake up later. Some companies are waiting to wake up. So look at them too. Enjoy the show while you can.

Posted by tonylim > 2013-05-26 12:55 | Report Abuse

Kekkeke pareto principle.
Universal rule of application.

Posted by iafx > 2013-05-26 13:59 | Report Abuse

ever consider retailers invest VIA institution funds? don't think institution $ falls from sky :

Posted by midastouch > 2013-05-27 08:24 | Report Abuse

The ringgit is likely to be lower against the US dollar next week, prompted by a lack of commercial demand for the local unit.

Affin Investment Bank Vice-President and Head of Retail Research Dr Nazri Khan said the minutes of the US Federal Open Market Committee (FOMC) meeting on Wednesday, showed that policy makers are now ready to start tapering off the US central bank’s third round of quantitative easing as early as June.

“We believe the anticipation will dampen sentiment across the region as any scale back of the bonds purchase would limit liquidity flows into Asian emerging assets including Malaysia,” he told Bernama.

Posted by midastouch > 2013-05-27 08:47 | Report Abuse

Share prices are expected to undergo further profit-taking this week with the benchmark FBM KLCI possibly retreating to the 1760 points support level.

Weak regional sentiment coupled with softer commodities and the declining ringgit would be contributing factors.

Affin Investment Bank Vice-President/Head of Retail Research Dr Nazri Khan said the anticipation will dampen sentiment across the region, as any scale back of the bonds purchase, would limit liquidity flows into Asian emerging assets, including Malaysia.

Posted by iafx > 2013-05-27 09:09 | Report Abuse

properties index so far added 5.21 points :) plantation down 44.16

Posted by midastouch > 2013-05-27 10:18 | Report Abuse

Japan’s Nikkei index slid 3.05% in early trade on Monday.

On Sunday, Bank of Japan Governor Haruhiko Kuroda said the bank will be vigilant to any signs of overheating of asset prices or excessive risk-taking by financial institutions, adding that there were no signs of that now.

Reuters