Update KLCI, Futures & Penny Stocks

KLCI- made a hammer pattern yesterday & bounced off the middle Bollinger Band line. Ordinarily that would be a bullish signal but the only problem is we all saw that it made about 2 points up in the last minute before market closed. Thats what my friend Isaac calls the "magic last minute push". If it wasn't for that bit of magic, we would instead have a black candle & not a hammer. That is one problem with using TA in M'sia, sometimes TA looks good but the underlying issue is manipulation to make it look good. So a one day candle is not good enough & thats why I always look for a few days before making a call on the market. So I would prefer to wait for further signals before I make a "state of the market" address in this blog. And the volume is not related to the CI its mainly because of the play up in the penny stocks.


FKLI - the futures seems to be still in corrective mode. No new signals to change my opinion that it is still bearish.


Penny Stocks - "One day of sunshine does not a summer make!" Penny stocks surprised us with a sudden high volume & price rise yesterday. There were no major reversal signals on the charts Monday to indicate this rise. All I can say is that the syndicates must have decided that prices have gone low enough to start playing the market again. This will probably bring all the market punters jumping in to buy penny stocks because they are afraid they will miss out on a new bull run. They may just lose another pair of pants by doing that. For me I will wait a few days to see how this turns out. If prices rise for another day or two, then have a mild correction & THEN rise again, then maybe, maybe I may enter some of the better stocks. Until then I will just watch the market. Better to be safe than sorry.