Friday, July 13, 2012
Pullback time for KLCI
KLCI : While KLCI reaching for the new high, yesterday is an earlier sign that our strong uptrend index will pullback from the overbought situation. KLCI is currently the best index around ... bravo, the Malaysia Boleh spirit.
Election : Much being said about the coming election, speculations are running in every media, if we need to read ... some told us it should be Apr-May ... but did not materialised. Now, strong rumours saying it should be after Hari Raya. With FGV(Felda) listed ... and the last huge one in place, the IHH in two weeks time ... we may see some 'window dressing' after the pull-back.
If one is to believe that we will be seeing a pullback and then surge again, then ... the short correction could be a good change to accumulate again. It is very difficult to predict exactly how many points it could be down ... but the correction is healthy. Taking 1607 as a support, we could only hope this support will not break.
Yes, KLCI is supported by local funds ... and some indications that foreign funds are buying into our 'cheap' counters too.
HSI : Yesterday, HSI closed almost 400 points lower and broken an important 20MA.
With DOW down again, as I have mentioned, I prefer to be in HKSE. Will continue to sell more of my KLSE as KLCI reaching new high ... with election-rally going on. Ride on the current trends in KLCI. Buy uptrending with high momentum stocks. SELL if it is lagging ... and make the trades short.
KLCI breached my 'predicted' 1620 too soon ... I saw it reached 1633 levels ... and many screaming 1650 to 1680 levels now. As KLCI shooting so high, have you profitted from it? Some of our stocks which sleeping for very looong may have not woke-up ... time to sell more?
Take precaution ... it is a pullback time again.