Ads

Tuesday, January 15, 2008

Manipulation

Seems like certain quarters are complaining about the last minute push up or the force pushed of KLCI.

I read at their statements and I want to laugh. Since when the stock market is not manipulated? So what to complain? Jim Cramer has admitted of manipulation. Even the US government manipulate the stock market through their Plunge Protection Team. So what's wrong if our government manipulate the market? The invincible hand has been pushing the index since Christmas.

Trading in stocks always comes with a certain risk. We need to always beware of the big crocodiles. They manipulate the price, the volume and the news. They play with your emotion. That's why it is never easy to make money.

So either you dance along with them or you just sit at the sideline watching. It's ok to highlight the manipulative dangers to the young and innocent, but don't make it a political issue or complaint Aiyoh, politicians themselves are equally manipulative. But they act as if they are holier than thou. My point is manipulative push up or push down are all natural actions in a stock market.

My current reading of the KLCI:
Correction has set in (obvious statement). If uptrend to continue, the correction should not fall below around 1480. That's all I can interpret from the chart. It's it all over? It's only 2 days action, I can't conclude from just two days of data. One thing for sure, I don't see any euphoric volume yet (because many retailers are aware of the manipulation?).

Well, if the Ringgit continue to strengthen against the US dollar, I guess the foreigners will buy more of our stock. I'm still concentrating on the blue chips counters. If they want to manipulate, then it is easier to buy the largest weighting KLCI component to push up. Furthermore, foreigners will only buy large liquid stocks.

Some of by holdings have good buffer, some have gone back to square one. Some are near my stop loss. I will stay aside for now until the selling pressure subsides. When? I hope soon.

4 comments:

Anonymous said...

Market may down, but CI may not coz govt support. Top 5 CI counters is 30% weight. Plantation CI counter is 30% weight. Very easy for govt to maintain CI.

Proxyclub said...

Aiyoooo...swifz. this morning dip is a tiny drop in an ocean. go buy 100 shares on each counter for your retirement. don't say I didn't tell you later on.

Michael2005 said...

Proxyclub is a wise man and you listen when he speaks. A great investor also with a great following. So are you one of them, Swifz? He is also humble since he acknowleged me as his great master sifu. Now you Swifz...do you not want to win and win?

Proxyclub said...

michael'05 made great post on tmclife for you to win big, swifz. go have a look at his recommendation guranteed to win big. Don't lose this chance!