Talking about election factor, it is not just about to raise the feel good factor, it also about to raise lot of funds. True, bullish market does raise the feel good about the economy and it is not that difficult to raise the index.
That was a nasty correction for those who made entries early January. That's probably after seeing the market gave a great 2011 bullish opening ceremony. Well, KLCI has been creating new historic high again and again, the market need a breather once in a while.
That was a nasty correction for those who made entries early January. That's probably after seeing the market gave a great 2011 bullish opening ceremony. Well, KLCI has been creating new historic high again and again, the market need a breather once in a while.
KLCI corrected after the bearish Twin Peaks (double top) pattern As you have probably expected, the correction was likely to end in the current pivot zone and it did rebound (with micro double bottom) in the zone. That despite there would be a long Chinese New Year break. Thus, we can expect FBM KLCI to climb again and shall attempt again to break the resistance at 1,576 pt. If KLCI can break that resistance, it means we'll get a new historic high. (Take it as a bearish warning if it fail this time again )
Below: FBM KLCI Daily Chart
The theme for 2011 is screaming loud at you. Yes, it's the election thing. Stockbroker analysts already saying election as a big factor for 2011. (Well, so much about financial analysis). First we have Sawarak election (rumored in March 2011 - school holiday period) and then the General Election.
Talking about election factor, it is not just about to raise the feel good factor, it also about to raise lot of funds. True, bullish market does raise the feel good about the economy and it is not that difficult to raise the index.
Based on 2008 General election result, BN need a lot and a lot more fund for the coming one, so what happened in 2008 will not happen again. Typically by pushing some goverment-linked counters (GLC) and some sponsoring companies counters and sell them. Those companies need to give donation more than usual. I will not surprise if TNB want to increase the rate after the GE. Or an increased number of lottery lucky draw (wait a minute, it already increased).
Recent correction gives a lot of opportunity to buy share for short-term play. I supposed stocks that had been actively traded before the correction will resume. Those election-theme counters already highlighted by stockbroker analysts. With Malaysia multi-billion worth of projects still not yet awarded, you might want to look at the likely candidates among the construction stocks. When will be the general election is anybody's guess but don't you think so that those multi-billion worth of projects must be awarded and secured before the date of the general election announced?
