Flash Crash On Bursa 2013

The Flash Crash

It is the weekend now, and I am spending the whole afternoon, tidying up all my finances. Transferring money to pay for credit cards, bills, assessments etc. It is a good thing that everything nowadays can be done online , else I will be in deep time crunch time!!

If I did not read up on Moolah's latest posting. (see here) , I would have missed that our Bursa did another flash crash on certain stocks. (I was busy) There were 2 stocks that went limit up while another 6 went down-limit.

If you don't know the definition for a uplimit and downlimit (there are some things to watch out) See here http://www.knowthymoney.com/2012/07/what-is-limit-up-limit-down-in-bursa.html

Actually, there were like 3 stocks that was under my radar, that I think is a good buy if it were to drop. But, the flash drop came as a surprise so basically I doubt the normal retail investor would be able to profit from it. Come Monday, I am sure that these stocks will bounce back to their original prices. There are certainly elements of manipulation here. You know I know :D

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6 comments

kampunginvestor // 11:24 AM

Did you make money from the limit down? :)
Kris // 12:27 PM

No such luck, Bro.
ChampDog // 12:56 PM

That's why some said TA cannot be applied to Malaysian stock. :)
Kris // 12:59 PM

IMHO, I think the TA style needed in Malaysia must be the swing trader type because our KLCI is very small and prone to manipulation unlike the US.

US is big and fluid hence trends can be easily identified and followed thru.
maveric // 2:46 PM

@ Kris

Wow2...this post is more interesting.Got your tips already..;grab a few good counters & acquire some 'fire-sale' properties?

The diarrhea continues with the 'rock-bottom' not in sight yet..;read that China's Shanghai SE has dropped >20% since Feb (2,444pts to less than 2,000 currently)If China sniffers like this,I bet many important 'trading & developing' Asia nations probably will catch pneumonia soon..including us:(

An article in MC today 'Car sales in M'sia continue to shrink'..;
-sales volume plunged by double-digits year-on-year in May..
-used car dealers may have to cut prices to take control of the situation.Otherwise,they have to face keeping 150,000 cars in their stockyard from around 100,000 currently..

Sometimes,it makes no sense to capitalize on other people miseries to profit your own self!
Kris // 10:01 PM

I don't really see the world economy recovering at all though.

US still dependant on the QE.

I sense a correction coming soon on KLCI.