Our KLCI In A Bear Market

Posted by Kris | Saturday, March 08, 2008 | 0 comments »

Our beloved KLCI is showing a classical head and shoulder pattern on the daily candlestick chart. (Shown in the rectangle) A few days after that, it is all way down south. MACD and stochastic signal do not look so good as they are trending downwards.

It has been a long time that I did not monitor the KLCI partly to poor market conditions (I lost money during this downtrend period, but it could be worst if I did not cutloss earlier.What a costly tuition fee!!) and partly due to the busy work schedule. A lot of blue chip have been bleeding lately also. The market did not even spare the so-called fundamentally sound stocks like Gamuda when the infamous insider move triggered an avalanche of sell calls by analysts. A lot of stocks experienced consecutive limit downs which is not a good omen. Some analyst even have the nerve to suggest to their customers to buy! buy! buy! and pointed out that the KLCI can even reach 1,700 by the end of the year.

So what is the best thing to do during this bearish market? Do NOTHING.