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2009-01-05

What Reason KLCI To Bounds Up

Base on world history, when war happen share market will drop but this time Israeli army operation in GAZA did not drop the share market. The share market bull up! I just think, is this Israeli attack are one of the way to make share bull up in this crisis? After the attack start, oil price had go up and now still look like will go higher, due to this most of the oil & gas company share market price had go up.

At home Malaysia, KLCI is bounds up higher each day. CPO price did not go sky high but plantation company share especially IOICORP go sky high, the formula is look like incorrect. The bull may countinues for this week due to their are 2 major reason to cash out from share market, 1. is cash out for Kuala Tengganu Election and 2. Chinese New Year at end of this month. If this week not many retail traders buy in into share market, the bull run will countinues next week. So the basic idea is trap retail traders money.

http://biz.thestar.com.my/archives/2007/8/8/business/p12-stockviewers.JPG

Crisi is not end yet and Goverment is no money to help the economic the only option is use EPF money to buy up KLCI for someone to sale out they share in hand to cash out from share market and at the sametime windows dressing Malaysia economic before election come.

I think next stap to windows dressing the Malaysia economic is good is by speculate Ringgit. Singapore economic is bad but you see the exchange Ringgit with SinDollar is still high. What happen? I think Malaysia will devalue ringgit to show that CPO price is up and KLCI is bounds up. Export will show good value and export index sure go higher, thing look good but later we will face inflation. So don't keep too many ringgit, keep Gold is better.

Hopefully this bull run of KLCI did not trap many retail traders, we need to cash out follow all the big big fund.

5 comments:

Elvis2020 January 5, 2009 at 2:45 PM  

I agree with you that fund managers want to trap retail investors. Or fund managers wants foreign investors to buy at high price coz at the moment low presence of foreign funds. Either way, this bear rally wont last long. My 2 cents worth opinion is that we wait for any BAD NEWS to appear before we sell out i.e. bankcruptcy of US banks/auto. At the moment, enjoy the returns guys!! 100% returns??? Or ya, cut lost if any, maybe 10% of you capital if market turn, cio...

East Point Trading January 5, 2009 at 4:53 PM  

I think the bad news for Malaysia will come out after Kuala Tengganu election, before that now is the time take profit or cut loss.

Enjoy your new year ang pou from KLCI

Elvis2020 January 5, 2009 at 5:51 PM  

Durian, is it time to take profit on KNM?

East Point Trading January 6, 2009 at 7:54 AM  

Halo Elvis2020

I think the price may up till RM 0.50 and I had buy some when the price at RM 0.41 so I plan to sale it at around RM 0.50

The time to sale KNM is near, I plan to sale out all my share before 20 Jan 2009.

Ivan January 6, 2009 at 10:48 PM  

Seem the BN can win at least 90% . but wat happen if BN lost again ..wonder the KLCi can fall down to 850 easily or not. . .. let us c. . .soon

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My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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