You know poker game. The industry itself want to vow more and more investors coming in, these financial crisis and scandal here and there is not good. Need to paint a rosy picture full of optimism.
A little of Golman Sachs hiccup and FBM KLCI is still within the trend channel (see Andrew Pitchfork channels in the chart below) and the support zone about 1,310 pt still holds. Yes, KLCI index is still in the overall bullish mode and still hard to say the bears are coming. Again, precisely I am referring to FBM KLCI and how the stocks you are holding are doing are some other stories. But expect some few minor weak days, some bulls already 'hurt' and are anxious to sell anytime market rises.
On the right: FBM KLCI daily chart up to today morning session close:
A little of Golman Sachs hiccup and FBM KLCI is still within the trend channel (see Andrew Pitchfork channels in the chart below) and the support zone about 1,310 pt still holds. Yes, KLCI index is still in the overall bullish mode and still hard to say the bears are coming. Again, precisely I am referring to FBM KLCI and how the stocks you are holding are doing are some other stories. But expect some few minor weak days, some bulls already 'hurt' and are anxious to sell anytime market rises. On the right: FBM KLCI daily chart up to today morning session close:
The Goldman Sachs stories is an interesting event. The news is everywhere and it can be felt every corner of the earth. Dow Jones downed (double-digit) and so are Asia Region and Bursa Malaysia. Just for one day for a Goldman Sachs teaser and then it business as usual. That leaves a lot of question actually. Is it sustainable? Does everybody forgives and forgets that event already within just one day? Will then be more opening of a lot more worm from Wall Street can. Will there be a dead-cat-bounce signal?
You know poker game. The industry itself want to vow more and more investors coming in, these financial crisis and scandal here and there is not good. Need to paint a rosy picture full of optimism. At least until "we" have already pull out all my money. After that, it doesn't matter. 'We' can go short. Gloom and doom prophets are welcome but not until 'we' already on the sidelines. Right?
Over-optimism is the very first early bearish signal. Probably it is not in 'over-optimism' stage yet but with good corporate earning reporting still coming in, it reasonable to say we are in optimism stage where pessimism are no more. I am not sure of Bursa Malaysia is in what stage, I thought the correction already due since August 2009 (you can check my previous blog post). And that the biggest forecast gone wrong I have made, KLCI just keep on rising like there's no tomorrow (until today there's still no meaningful correction yet).
And on the Goldman Sachs matter, look like they already find a scapegoat in the form of an employee named Fabrice Tourre. Goldman Sach is not (accused) guilty, it just one of the employee and US senates still voting on this. What can you expect, Golman Sachs is Obama's huge financial contributor, you can smell Goldman Sachs on Obama. Told ya, something wrong with banks controlled democracy.
