KLSE Bursa Malaysia Outlook (a short brief)

Above: KLSE Composite Index daily charts as 21 Nov 2008. Click the chart for a full view.

Past two week gave some chances for us to accumulate. Check out the chart. The index has retraced more than 60% of the previous up-trend (peak at 926.65 pt) to 866.88 pt. Those weeks  witnessed some mild correction days rather than sharp correction. Because of this reason, staggered buying is more suitable for counters like Mayban and TM.

Here I emphasize "accumulation", because of the current scenario: many days of mild correction and the index could  jump anytime. So accumulate buying at nearly low of the day is a better strategy rather than waiting for a sharp correction for a one-time buy.
For small counters it was a little more obvious. Many of the counters 'in the game' the previous weeks before has corrected well enough and gave a hook-up bar on the last Friday. For example, there charts at the bottom for SAAG, DBHD, TEBRAU, RAMUNIA etc.  They could be ripe enough for buying.

For KLCI itself, the last Friday gave a nice hook-up bar with higher volume after many mild down days. That's a good signal for next week.

Why I  am emphasize  'buy'? I think started from 30th October 2008 we already entered a more bullish undertone market that I think will continue until end of the year. There should be several swings in between for swing or position trading.

We are close to the last month of the year. As I mentioned  in my earlier post. I am expecting a better year-end closing this year (after a disappointing opening).  For buying with anticipation of window dressing,  I prefer small counters. Based on previous years, they have better gain potential within the last few days of the year. Look for recent high volume small counters that maybe already corrected and still in the game until end of the year.

Let me warned you again, that just my opinion based on my limited technical reading . Obviously the market is driven by sentiment. The current top global events that are : ugly global corporate earning releases and declining commodities price (better pray for CPO) are still happening.
BTW, our largest capitalized listing (SIME) counters haven't yet show any bullish signal or accumulation. I hope this will change though.

Bank Negara will cut interest rate? Likely.
Below are daily bart charts (as 21 Nov 2008) : DBHD, SAAG, RAMUNIA, MAYBAN, TEBRAU. Click the picture for a full view.