Hi folks, is it consider quite okay that KLCI opened with 20 points lower and ended with 11.5 points lower on yesterday? Even though all analysts and experts clarified Dubai debts have nothing to do with KLCI, but most of the investors are worry and simply sell off their shares in a low price. This is what we called stock market, it totally acts based on emotion!
My stock portfolio profit simply gone down 30% in 1 day, how fragile it is. Okay, let's forget about my portfolio at this moment. With the index breaking of 30-days moving average and almost touching 50-days moving average, is it indicating the bull trend is ended?
I heard all analysts and experts reiterated mention that the bull trend is not end yet, and the selling pressure is not really heavy, KLCI is just temporary under correction. On the other hand, many investors thinking if they don't take profit or cut loss now, when it will be?
In my opinion, I believe the bull trend is still exist for KLCI, due to the followings:
(1) Index is still above SMA50, and the selling pressure is alleviated today.
(2) The global index are still positive. For me, KLCI is just a laggard index, and it will normally follows what people do.
(3) Most of the local companies are starting to turn loss into profit, some even making more money for 3Q09. It's just the beginning of the game, you don't tell me you are going to quit it for now?
But I don't anticipate index will shoot back to 1300 so soon, due to some reasons, which I might share with you next time. Be patient, folks, we are not looking for fast money here.
Happy trading. ;)
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Pass by from Innit :) Have a nice day!