Wednesday, April 06, 2011

KLCI : Support 1542. Let us see the short correction now. Technically, it is a SELL.

DOW flat ... I wanted to post KLCI chart last night to show why SELLING should in mind(instead of buying) ... many shooting very high and time for profit-taking again. I have taken profits TOO early in many as I did not expect it to shoot for the moon. It is reaching Jupiter soon ... once it is out of our galaxy, as they say ... SKY is the LIMIT. Haha ... change that into space is the limit.

See ... all started to be bullish again. During Egypt, Libya and middle-east un-rest, many started to sing DOOM and asking around if it is a reversal, bear in grip and double-dip theory were back!! It was VERY dark day when Japan earth-quake, tsunami and radiation all in one threatening markets. KLCI meltdown together with the radiators ... hmm ... whatever we bought and hold dived ... Then, I received few e-mails asking what I think of KLSE or have I exited. So, I wrote it here explaining that I am still bullish but trimming(some with profits, many with losses) my positions to preserve my bullets.

Yes, shooting started 3 weeks ago ... again, I am in bull-camp this year. Those broker houses will come up with prediction that KLCI will break 1680 or whatever level, to fire many to believe we are in SUPER BULL run in 2011. Haha. Believe them at your own peril. I dont think so we should care if it is bull or bear. What is important for traders are to place a stop-loss, a level where I will cut it off no matter what. Then, if we are right, it dives lower ... we WAIT for reversal and start to accumulate again. Easier said than done!!

Now, it is a BULL ... so, many late-comers jumping in as they are seeing 1680(again). They are the same person thinking of 1480 or even 1380 weeks ago!! Amazing play of emotion in market!! I do notice that volatility increases substantially. What does that mean? UP and DOWN in wild swing ... it is a trader market!! And those good traders(I am not) love such a situation as they could capitalise on the swing.

May I ask again ... are you bullish or bearish? If I ask now, many will answer BULLISH. So, I shall wait for yet another huge correction when KLCI down to 1480 again ... and to ask the same question, believe me ... many views will be shaken and bullishness sentiments dimmed ... as fear of bearishness taking the grip. Ouch.

Time for me to have my nice breakfast while marking some papers. Today I will not be free after 9.15am till 5pm with an hour break for lunch!!

have a nice trading day.


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