Bursa Malaysia This Year So Far

They said the world's free market  economy has major flaws. Does anybody doing something about that? 

First, on last week's correction. Will that trigger a major correction? Is that a sign a major correction is coming? For now, I don't think this would trigger a prolong  downtrend.  a least not yet.  Let KLCI rebound first from this correction which should come very soon since the support (minor) level is close (that 1250-1235 zone). Need to see whether the support hold and of any rebound need to see 'how' KLCI try again to break the recent high.

Bursa Malaysia so far:
1. KLCI is well supported. There's been issue of China credit tightening which caused regional market to react negatively a few times since, but it seem like KLCI was immune to that. It's only after Obama's  proposals to impose tougher regulations which really has affect on KLCI.
2.  Volume is increasing since early of the year. Daily volume maintained above (or close to) 1 billion shares which is overall higher than previous 6 months daily. 
3. More active trading activities displayed among stocks, across  all the boards, sectors  and type of counters. Includes medium and small cap stocks. These reflect  retail investor  are coming back to the market and more participation is expected with Chinese New Year rally anticipation.
4. Not least, the syndicates also returned. As you can see more companies are inquired by SC. Of course a usual, without fail, the ready made reply is  "we not aware of any usual activities bla bla".
5.  Last week also showed the return of call warrants (or should I call it the Invasion of Call warrants). Typically they conquer the top traded counters of the day maybe for a few days which entice retail punters.  Then after that  they fade to oblivion. That can happens just within 6 months. If you caught holding when overall market is on prolong downtrend you has a very slim chance to recoup within 6 months.  If you want 'cheap' entries, there are many attractive penny stocks which give better chance to recoup in that situation.
Last week's down days give more trading opportunities and better entries.  My last blog post mentioned to go for mid and small caps, they should getting more interesting but  blue chips should also rebound from last week's correction.

They said the world's free market  economy has major flaws. Does anybody doing something about that? Obama's recent proposal to impose tighter regulation is something bold and should be welcomed.  Since 1997 financial crisis people already talking about excessive speculation activities by giant financial institution but what preventive measure been implemented so far? Banks still lend  a lot money to hedge fund or financial institution. In turn these hedge funds will speculate excessively on smaller countries currencies or something similar.  This goes on because at the end of the day, anything happen,  the government will bail them out.  And to finance these, Uncle Sam will keep on printing money (oh check out US's debt).  Will US go ahead with the proposal and how far they will go into stricter regulation in the future?.

Below: FBM KLCI daily chart (click to enlarge):