So, will the US government nationalize Citibank and Bank of America in this weekend? Whatever that is going to happen, it looks like KLCI will be testing its lower boundary of the rising wedge next week. I expect it to break and a test of 800 in this month or early next month.
Finance, construction, plantation and property have been downgraded based on this week's action:
For the world, SSEC is still strong, but an analysis estimates that 1/3 of the loan in January has been diverted into the stock market! No wonder SSEC has such a good performance. For Europe and US, they are still going down. Be prepared for the next wave of financial crisis where western Europe banks have overlend the eastern Europe countries which may default on their loan.
The summary of my analysis:
|Kospi||Down||Down (-)||Down (-)|
|SENSEX||Down||Down (-)||Down (-)|
So, I will stay away from going long in any market. Do not believe in any analyst that suggest to you to buy "defensive" stocks. When the market goes down, everything will go down. It is just a matter of percentage. Of course, "defensive" stock may go down less, but why should you lose your hard earn money? Put your money in the bank better, but don't be greedy for the high interest rate fixed deposit ;)