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2009-07-03

KLCI Volume Is Low A Sign Of Big Drop
























This few day KLCI volume is low and this is a bad sign, most of the time a constant drop of volume is a sign of the index is about to happen a big fall due to fund had pull out from share market slowly and at the same time buy back some to avoid price drop. After most of the fund already pull out they will drop the share price to the level they target to buy back.

However KLCI is about to replace by FBM 30 and historical data about KLSE index will be unvalid to forcast Malaysia market direction.

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2 comments:

Elvis2020 July 3, 2009 at 4:54 PM  

Prices of shares are SUPRISINGLY going down very slow. Take KNM, the price drop is very slow except for one time drop from RM1 something to 90 cents. Now the price is hover around 80 cents. But i think by end of July KNM price around 50 cents +/- 10 cents. This consolidation will probably go on for this 3rd quarter. Wait for big drop to happen and volume to thin out to confirm end of consolidation. Big players want to dry out contra and margin players first.

Elvis2020 July 6, 2009 at 7:58 PM  

Hahaha....thank goodness i stay out of the market. Really pity small players who follow analysts recommendations to buy this and that. Only 2 weeks ago things were on RECOVERY MOOD. And now mood begins to get nasty not only in US but also rest of the world except CHINA(this country is on its own world with 1/5 population)which has cheap money been distributed. I think market everywhere will be very unstable for next three months. So when can you really buy? Hahaha....just wait patiently....YOU WILL KNOW IT....

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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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