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2010-06-09

Euro Stoxx 50 Is On The Way Down - Euro problem is still not yet over



















Almost a month Euro Stoxx 50 still not bounds up to DMA200 level. This is a vary bad sign that world share market may facing double-dip recession.

Bernanke said the US economy seemed to have enough momentum to avoid a "double-dip" recession, while European leaders were committed to ensuring the survival of the euro and had enough money to meet obligations of heavily indebted member nations. But if you remember before 2008 US dip into recession, US also said they can avoid recession by doing this and that but at the end share market dip deeply also, however due to good financial fundamental in Asia, the recession is short.

However recession also a vary good opportunity to make profit, during 2008 if you buy any bank share now you are making a lot of money. Euro problem is still not yet over with FBM KLCI supported around 1,300 may is a time boom for retail investor. Big money can make a picture look like FBM KLCI supported around this level and they may just waiting a good time to cause panic selling to make money again so I think now is not the time to rush into share market, it was no harm to wait for the opportunity to come.

6 comments:

Ivan June 9, 2010 at 12:34 PM  

Bro,'

that is true. .
wait the mkt crash to level 1000 or below. .and baru in . .just kena burnt . .. buy and sell at same price. . . at least, cut my lost. .

East Point Trading June 9, 2010 at 2:08 PM  

Hai Ivan

Now the market is vary risky so better keep out of the market but keep the eye watching.

Ivan June 9, 2010 at 4:34 PM  

Planning to short the CI .. . as I anticipate the CI will go to "johor"

Ivan June 9, 2010 at 4:34 PM  

on the same time to buy some good pw :D .. hopefully mkt can have some American type PW

East Point Trading June 10, 2010 at 7:26 AM  

Hi Ivan,

I think Malaysia bank will not issue any put warrant with America type because sure will made the bank loss money.

Since begin of this year all call warrant is Europe type and with a vary high premium. Look like call warrant is getting harder to make profit so better start to think alternative already.

Ivan June 10, 2010 at 9:23 AM  

So bad .. .as we are not yet a well development market. . perhaps go oversea to buy some pw ? haha. . i hope i am not wrong. .any thing implement for sure the CI can send to 1000 level. .maybe i am bearish guy.

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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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