Wednesday, December 20, 2006

Is this a turning point?

Is this a turning point? This questions is tremendously difficult hard to be answered. Volatility had increased and the money remain in the market is those brave money, which are intended to be make or die. The high spikes in MESDAQ and KLCI are indeed relieving, but it is not inspiring. The volume in KLCI remains relatively constant while the MESDAQ (although accompanied by positive price to volume action) is on a clear weak downtrend (due to previous insane and unpredictable charting formation). Obviously, differ and divergences of opinions in the market are huge, and the small players are arguing with each others. The big boys and foreign funds are found no where. The Thailand bite and bark at them, and yet, why are they not shifting their fund to Malaysia? (Obviously, foreigners still remember how they are bitten by Dr M)

While many friends are seems worried, anxious and uncertain, I wish to confirm with them that the bull is not yet died. It is only half dead. As a risk taker, I suggest invest partial of the capital in the market, as the Bull seems to have strong support by Najib and Malaysia government. Besides, GLC are getting more and more efficient, CNY effect are moving near, and many of the penny chips are almost at the year end low. We can never be certain anyway, if our decision today will result in a huge gain, but it is a risk worth taking. Thus, I suggest entering some penny stocks which their prices have already been pulled to the strong support, is definitely a risk worth taking.

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