Biz Direct MarketKnowing When To Make A Good Decision

Singing in the tune of “London Bridge is Falling Down”

U.S. Dow Jones Falling Down, Falling Down, Falling Down,
U.S. Dow Jones Falling Down, everyone is worry,

Build it up with stee moo lus, stee moo lus, stee moo lus,
Build it up with stee moo lus, Obama says “hurry”,

Stee moo lus will crash and burn, crash and burn, crash and burn,
Stee moo lus will crash and burn, there goes my money,

Read the rest of this entry »

Bearish resistance has prevented the KLCI to go above 900 points last week. Despite the strong promise made by US President Barack Obama to revive the financial industry and economy, the markets reacted negatively as the economy is going to a record deficit spending. The US benchmark Dow Jones Industrial Average (DJI) fell to its lowest since May 1997 bringing the stock market back to 12 years ago. The DJI is currently at 7,270 points and I am expecting it to find the next support level at 6,000 points in the intermediate term. The KLCI continues to stay below 900 points at 890.67, trading between 883.81 and 898.74 points last week.

The Malaysian market is still pretty much in a correction. Technically, the KLCI is still in a wedge chart pattern that looks like a triangle. The market I still hesitating to move into a direction. It has already been more than three months. The short to long term averages have started to converge and the KLCI is trading within these averages, confirming the sideway market. However, the long term trend is still down because the 90-day Moving Average (90SMA) is still declining. The market is at a crucial point of time. Momentum is still neutral as indicated by the Relative Strength Index (RSI) which has been hovering around its 50% level.

Read the rest of this entry »