For Dow Jones Industrial Average, September is statistically known as the worst of the month of the year. There are jinx associated with September and October.
First on the longer term view, my bearish outlook still the same. On the short-term outlook, I find it interesting. My last blogpost here said KLCI will attempt to break recent high of 1,196.46 pt and will fail.
Well, the first attempt just touched high of 1,178.77 and then corrected. After that short correction, it then rebounded and as at 8th of Sept, it already closed higher than 1,196.46. Now, with higher low on correction and with last 2 days white candlestick, it tells bullishness is ahead. Yes, I expect KLCI will continue going up for some more days.
Below: KLCI daily chart
Thus, the major correction I am expecting in Sept and October still not yet begin. It just made me think again a fact I mentioned before. It was about the buying and holding power that our KLSE main player has. EPF and PNB has both the holding power and buying power. There's no foreign fund with hot money getting out
.
How about EPF is not considering selling and decided to rejuvenate the market again after a couple of weeks break? If you consider that, maybe the main correction just couldn't happen yet, not this year.
Maybe the correction (it still will come anyway) will come, say mid of next year? For now, unless, global market in a bearish mood for much longer than maybe only KLSE will follow. Let see what will happen to US market this month and October.
For Dow Jones Industrial Average, September is statistically known as the worst of the month of the year. There are jinx associated with September and October.
Since 1950 to 2006, the average for September is -1.0% a year and once as much as -11%.
September is the worst month, the closest is June with has the average of -0.1% a year.
Since 1950 to 2006, the average for September is -1.0% a year and once as much as -11%.
September is the worst month, the closest is June with has the average of -0.1% a year.
If you curious about other months, here:
MONTH: JAN FEB MAC APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
AVG. : 1.3 0.2 0.9 1.8 0.1 -0.1 1.1 -0.04 -1.0 0.6 1.7 1.8
Market change's tentative date 15 Sept 09.
Checkout :
EPF posts RM4.6bil investment income in the second quarter. Equities was the highest income contributor for the quarter, growing seven-fold to RM1.74 billion, against RM239.55 million earned in the previous quarter. By seeing the KLCI, you can guess, EPF will also made a lot in the third quarter. Here
Read opinions such as: “On this evidence, Malaysian investors, as a result of their holding power, have to a large extent smarted the market meltdown. This, in my opinion, is one of the most important factors supporting the market this year” at http://www.theedgemalaysia.com/will-the-ghosts-of-sept-oct-past-come-a-calling.html
Be aware of September and October jinx at http://www.nysun.coms/beware-september-october-jinx
