Very Weird Chart Pattern - M'sia Boleh!!!

(Please refer to the Chart below - click to enlarge) All my life, I never see or encounter with today's daily chart point. Lookin likes a `HAMMER' (candlestick), but very very weird. Hope to see a technical rebound toward 1,210 tomorrow. Punters who did cut loses in the morning really kena teruk already. Punters & Remisiers & Traders will start having less sex from today onwards.

Anyway, as for today share prices closed sharply lower, though well off their intraday lows, as investors who missed the previous run-up picked up bargains, helping the benchmark index recover from the day's low of 1,136.01 points.

The two-day sell-off may signal the end of the Malaysian bourse's bull run since late last year. The meltdown on Asian markets will "stop the bull for now and it may take a while for people to come to their senses. In the short-term, investors won't care about the fundamentals, it will be a sentiment-driven market.

The Malaysian stock market will follow regional markets, but (the question is) who will be the leader? The US market used to be the leader but it had followed the China market yesterday. China is recovering today, but the confidence has yet to return.

Meanwhile, Bursa Malaysia chief executive officer Yusli Mohamed Yusoff, in a bid to calm frayed nerves, issued a statement saying the Malaysian bourse's fundamentals remain strong despite the sharp decline. (Exactly the same words as what Anwar Ibrahim said in 1997.. heh heh.. don't worry our fundamental is still strong).

KLCI CASH
Support at 1150, Resistance at 1210 & 1250.

For 2/28/2007 the KLCI closed at 1,196.4500.
Overall, the bias in prices is: Bearish.
The KLCI is vulnerable to a correction towards 1,185.82.
The projected upper bound is: 1,234.82.
The projected lower bound is: 1,162.40.
The projected close: 1,198.61.


SPOTMONTH
Support at 1120. Resistance at 1250.

For 2/28/2007 the closing price was 1,193.0000.
Overall, the bias in prices is: Downward.
Vulnerable to a correction towards 1,175.93.
The projected upper bound is: 1,239.87.
The projected lower bound is: 1,150.19.
The projected close is: 1,195.03.

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Market Down, My Sifu Is Right Again???

Ghee!! seems like he is "da man" again. (Please refer to 3 Dec 2007 posting). The best thing, he's not even live in Malaysia. And only by lookin at the chart, he beat me one more time, goshhhh damn old man. Happy New Year.

As for today, the share prices closed sharply lower across the board, sending the KLCI to its biggest single day fall in two years, on forced selling after last week's record trading volume, with the decline further intensified by heavy foreign investor selling.

Here's several reasons that being said by our local analyst regarding the sell down:

1. The selling could be attributed to renewed fears of a slowdown in the US economy after former Federal Reserve chairman Alan Greenspan told a business conference in Hong Kong that the US economy had been expanding since 2001 and there are signs the current cycle is coming to an end.
2. Investor confidence was also spooked by higher oil prices amid mounting tension in the Middle East after Iran failed a UN deadline on its nuclear programme.
3. The weak sentiment across the region could be triggered by concerns over economic data out of US as well as geopolitical tension in the Middle East.
4. The decline was mainly triggered by heavy deliveries after Thursday's record trading volume. Some 4.78 bln shares were traded on Feb 22.
5. With the benchmark KLCI now dipping below its 10-day moving average of 1,260 points level, the index may drift further to its next support level of 1,200 points. (Ghee! where the one who previously said 1400 lar, 1350 lar).
   

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