Is Mid-term Correction Around The Corner?

After the KLSE index has been bullish for about 65% from the highest point, everyone is worry about the current situation now. Will it continue to bullish or facing mid-term correction soon?

Basically there are 6 strong hints that KLSE will be facing a mid-term correction.
(1) KLSE index has been raised up to 65%, it should be correcting around 50-65% retracement. The index has been facing difficulty to move further since financial budget announcement in the end of last month. It solely rely on external market to move now.
(2) The top 20 volumes stocks are mostly formed by penny, warrant and PN17. This indicating the blue chips and small-cap stocks are too expensive for investors already. Once the penny/PN17/warrant stocks are expensive for them, you can imagine already what will be next?
(3) The average of price falling company are greater than the price rising company since mid of last month. This is normally the symptom before the bearish trend or mid-term correction.
(4) Foreign investors are started to retreat their funds from the growth stocks, which has reach the new high of the year everyday. Without the support of foreign investments, who else afford to do so?
(5) The most attention company, Maxis on board also seems couldn't alleviate the situation.
(6) Most of the companies announcement are positive for the 3rd quarters, but most of the investors are not excited with the positive news. Those company share prices are mostly fall than rise.

My analysis might be wrong, the only strong hint I'm lack of, is the volume. Once the volume is shooting up, then it's time for us to cut loss and take profit soonest. Anyway, just remember one thing. When everyone is fear, it's time for you to be greedy and attack. When everyone is greedy, it's time for you to fear and retreat.

Happy investing.

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