Friday, October 10, 2008


What a crazy week! Have we reached capitulation? I don't know. The readings for the various sectors in KLSE remains:
Malaysia Longterm Midterm Shorterm
KLCI Down Down Down
Finance Down Down Down
Construction Down Down Down
Plantation Down Down Down
Property Down Down Down
Mesdaq Down Down Down
2nd Board Down Down Down

KLCI Monthly Chart

Looking at KLCI monthly chart, we can see that only one uptrend line remains before we hit zero. That one is drawn from the low of 1986 with 1997/1998 crisis. Will we touch this line? I do hope not. Next probable supports: 800-820, 600-650.

The scary part is we are diving into these supports. Where is the rebound? Trust has been severely broken. When it is broken, it will take a long time to regain back.

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