Morning ... days becoming busier since I started to conduct e-meeting for my group. My nights from 10pm onwards being used for these meeting that I do not have much time to do my readings, updating myself regarding market outlooks, what is what and the going-ons.
AirAsia : Selldown ... check 3.20 level.
What I do know is KLSE is reaching over-valued level comparing to cheaper indices such as STI and HSI. So, why KLCI reaching such a high PER level? Due to coming budget or election, that we need a rosy situations in market? All these are being speculated for some time ... while we might be seeing some so-called foreign funds exiting some risky counters such as CIMB ... and yesterday, AirAsia dropped 3%. Saw PChem dropped 3% yesterday too ... terrible day as we expect a'technical rebound' but it fails to attract supports from funds ... or us, retailers.
During last night e-meeting with my e-tratles, I hv strongly telling others about my opinions of playing with those 'lousy' stocks, those specualted such as KNM and those ACE counters. The reason is clear ... no FA to support the movements, no TA could be applied as indicators failed badly and no HA as those pressed deeply down may not be able to light anymore. The risk is simply too high. So, stick to valuations of companies with good fundamentals, as we could apply indicators a little better. Even that, indicators tend to fail in our stocks as KLSE lacking of liquidity and expose to manipulations. Be cautious.
How do we protect ourselves at the moment? Are we in those spooky SEPT again as 9/11 ringing in our ears? How about the Malaysia Day, 9/16? So, SEPT is indeed a month of fear. Is Halloween falls in Sept too? I m not sure ... I need to check my spooky calendar and it must be showing some thing there ... oh yes, I think it is a Ghost-month for Chinese? Or is it? Ghost-month together with Mooncake festivals? Hmm ... perhaps it is a VooDoo month celebrated somewhere in Africa? We can't say Africa is far from us and we are not affected as ... well, we have thousands(if not, reaching to millions now) of Africans in Malaysia now. Yeah ... we are multi-racial harmony 1-Malaysia country. Welcome to the land of everything can, or we called it Boleh-land, locally.
Yes, we may see some short rebound ... and general view is that nearing to election ... FEAR factor will intensify. If one could not see the huge dive, then ... we need to protect ourselves by cut-losses when the support fails, when our stocks no longer could perform or when we need more funds to move to HKSE. That was my plan ... and will move more out of KLSE and checking on cheaper HKSE, where the political risk is not as high as in Malaysia.
Grow up Malaysia ... we r going to celebrate your b-day ... again.