Friday, July 25, 2008

Stabilizing ?

Looks like the market has stabilized. The indicators are still mixed. From the daily chart, we could be heading to a dead-cat bounce. I will still wait at the sideline until the weekly signals say up.
Malaysia Longterm Midterm Shorterm
KLCI Down Down Neutral (+)
Finance Down Down Neutral (+)
Construction Down Down Neutral (+)
Plantation Down Down Down
Property Down Down Neutral (+)
Mesdaq Down Down Neutral (+)
2nd Board Down Down Neutral (+)

Anyway, let's have a good laugh with this video.

The serious message is when the crowd is against you, you can either follow them (trend trading) or go against them (contrarian investor). The important is not to run behind the crowd (i.e. you are the last person to follow the trend) or get trampled (catching a failling knife). Theory is easy. Practice is hard. You just got to practice practice practice until you get it right!

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