You already heard some said they are selling because they are taking "sell in May and go way" market adage. Well, I don't think market participants would enter selling mode simply because of that adage. Since when they really follow that wise adage or something similar
FBM KLCI is at another junction again. Former 1, 300 pt support level is now the main resistance and KLCI is now very, very close to it. If it can break the resistance then it almost back in business. We can see that in a day or two.`Until that hurdle is overcome strongly, expect more bearish mode.
I did say ALMOST back in business because it will not be the same. Whether KLCI can re-enter above 1,300 pt zone or not, the recent 9 consecutive bearish days certainly has it after-affect. Many bulls already hurt and with hurt bulls we can't expect KLCI to run as gloriously as before. Just hope the bears is not so ferocious. It will take some time for the injury to heal. Thus, in the current scenario we can expect many weak rebound and dead cat bounce signals among stocks.
Wall Street's last trading day was very bearish, due to disappointing U.S. unemployment data . Euro-zone mess is still haunting like ever, you can watch the dominoes effect at works in real time.
You already heard some said they are selling because they are taking "sell in May and go away" market adage. Well, I don't think market participants would enter selling mode simply because of that adage. Since when they really follow that wise adage or something similar. That adage just validated the doubt they already have in the first place. They already doubted the ability of the market to keep on going up..
Last week, there are some bargain hunting which is the interesting especially when the buying came from retail players. The volume are lacking though, a signal major funds are not buying in a large scale. This is interesting too, because we did expect and still expecting EPF will keep on buying and we don't need to worry much about KLCI, right? Seem the current index level is still not attractive enough for them. That raised a question, are the fund managers expecting some more bearish shocks ahead?
Even if KLCI can overcome 1,300 pt resistance, the momentum to follow through is still doubtful to me.
Additional: KLCI and School Holiday Effect
