Friday, July 03, 2009

Weekly Review

KLCI Daily Chart

No momentum. Should not go higher than 1100 without a correction. Could this rally be over for now? I think that if KLCI close below 1050 at the end of the week, then it should visit 1000. Whether 1000 will be broken or not is still to early to tell. Generally, the market is still holding up:
Malaysia Longterm Midterm Shorterm
Finance Up Up Up
Construction Up Up Neutral
Plantation Up Up Up
Property Up Up Neutral
FBM Mesdaq Up Up Neutral
FBM 2nd Board Up Up Neutral

SSECI has broken out of channel trading. How high can it go? Too bad Hong Kong stocks are not following. Now, let's look at the percentage gain from low to high for the following markets:
Low High %
KLCI 801 1096 36.83
SSECI 1665 3088 85.47
HSI 12618 19162 51.86
N225 6994 10171 45.42
Sensex 7697 15600 102.68
Bovespa 29435 54955 86.70
FTSE 3461 4521 30.63
S&P500 667 956 43.33
NasdaqComp 1266 1880 48.50

Some markets made the low in Oct 2008 while some in Mar 2009. The winner is India, giving 100% gain. Malaysia is 2nd last in the list. Even USA markets perform better then us. Anyhow, the low to high journey has not encounter any serious correction. So, in the next few months we will wonder whether it is a correction or something more serious.

Easy money has been made, the next phase is tougher. No clear indication whether the market will continue to move up strongly, or to consolidate, or to change direction.

No comments: