Friday, July 31, 2009

Weekly Summary

KLCI Monthly Chart

Unbelievable. Looks like a V-shape recovery. Looks it KLCI is heading to cover the gap at 1190. Looking up, there are two gaps at 1350 and 1495. Looking down, there are many many gaps. Why is KLCI behaving like this? I think that a lot of money is going into unit trust such as ASN and 1Malaysia. Maybe someone is frontrunning these funds. Anyhow, market is really overbought. Bluechips have lead the way and Friday is penny shares day. So, how long will this last? Speculators expect that China shares will continue to go up until Oct 1 because that is the 60th Anniversary of the People's Republic of China. So, it is expected that the government will not spoil the celebration mood until after the anniversary.

Looking at Bursa Malaysia's various sector:
Malaysia Longterm Midterm Shorterm Note
KLCI Up Up Up Overbought.
Finance Up Up Up Overbought.
Construction Up Up Up Should have more room up.
Plantation Up Up Up Should make big move soon.
Property Up Up Up Waiting for big move
FBM Mesdaq Up Up Up Will challenge the previous high
FBM 2nd Board Up Up Up Overbought.

No comments: