Thursday, August 04, 2005

This is not right!

One day KLCI goes up double digit, then the next day it surrendered most of the gain. Didn't expect that the profit taking is so strong. The candle chart points to more downward pressure. If breaks 940, then it was a false break and we shall be slaughtered.

Nothing is certain in share market. Only probabilities. It is so easy to learn technical analysis. You learn about uptrend, downtrend, resistance, support, ascending formations, MACD, RSI, Stochastic, Elliot wave etc. But when comes the time to implement, it is not straight forward. If your analysis points to one direction and it goes the other way, you will be wondering what has gone wrong with your analysis. From my experience, technical charts don't lie. It is we who lie to ourselves. We always try to interpret the chart to be favourable to our situation. Only experience will minimise this impact.

At the time of writing this, US market shows a large drop. Don't know what will happen when market opens tomorrow, will 940 be breached? Anyhow, I won't be able to see the live action myself as I will be going to Holland for a holiday. Yes, the place and not the other "holland" (in Cantonese).

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