Despite the global economy is recovering, correction will still often comes out to give discount to the stock price. For the current correction, the market has it's recent to go down, which is the worry of the Europe's debts and Greece bankruptcy issues.
So what do you think, to what extend the market will be corrected this time? KLCI's SMA100 is broken since last Friday. If you are a trend trader, you might not able to do anything for now. If you are a technical analysis trader, you may be trapped with the typical white hammer sat on top of SMA100 on last Monday. Well, I believe there will be no impact on mid to long term fundamental analysis trader, as the overall fundamental of global market is still positive.
As the market has been bullish since March 2009, would this be a mid term correction? Normally mid-term correction would last about 2-3 months. But since the bullish is too fast, perhaps the correction might be ended swiftly as well. Today, KLCI rebounded after lunch time, due to the Asian market rebounded. It seems like a positive sign to rebound with a look-alike white hammer, because they supposed to ended with gap due to the Dow index dropped below 10,000 points. Perhaps good news is around the corner?
Many people try to cut loss these few days. From the volume traded, it seems the sellers are getting lesser and buyers interests are still satisfied. Adding with the positive 4Q09 financial report from the local companies, it might not be that worse we think of.
Well, to make it a conclusion, we still have to see our big brother, US market color. Will it be better if we do Forex investment by selling EUR or GBP now?
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