31/5/2012

Foreign Fund Started to be active trading

After previous few days selling, in this 2 days foreign fund started to be active collecting stock with huge volume. We might need to start take an eye on plantation stock movement, so that we can track the footstep on foreign fund and follow their flow to earn some money.

30/5/2012

KLCI up 9.85pts

After 5days selling, Foreign Fund buying back stocks with a high volume. If you did observe on markets Top Gainer list, you may see mostly are the plantation stocks. So you can make an assumption that these are the favourite counters of Foreign Fund ( BAT, TWS, GENP, PPB, TASEK, AEON, UMW, PRUDEN, IOICORP, CIMB ). Mostly are plantation stocks in Top Gainer List. By looking at the chart and top gainer list , thus you can follow the smart money flow to buy in some stocks. 

Foreign Fund must be following the trend of EURO side, as the previous day DJIA up 110pts++. But you have to be cautious today as most of the futures are in red.

29/5/2012

Foreign Fund in HOLD position

Foreign Fund is not taking any big action (buy/sell) in market, so we can detect that Local Fund can easily push up KLCI to 10pts+ yesterday. 

With DJIA closed in green, I am expecting the KLCI will be in green too. How green it can be goes up to? Let's Mr Market tell you the answer by observing it today. 

28/5/2012

Foreign Fund selling continuously 

25/5/2012

Bearish Signal getting stronger?

Last friday KLCI closing @ 1551.12 which is in green, but from the graph we can see that Foreign Fund is slow buying and profit taking. 

If you read the previous post analysis , I assuming that you should have a clear trading plan now. Avoid losing money is one of the best strategy in this bearish period. 

FBMKLCI Trend ( 26/5/2012 )

FBMKLCI daily chart picture (A)

FBMKLCI trend breaking 20MA

From the daily chart showing FBMKLCI is on a strong support at 20MA since 2011 December until recently 15/5/2012 with a down-trend signal with a confirmation on the following date of 26/5/2012. What we understand is that we should sell off all our holding shares while the confirmation of KLCI is in down-trend. 

FBMKLCI weekly chart picture (B)

We can clearly see from the above weekly chart that FBMKLCI is breaking below 20MA where the long black candlestick at the end of the chart is slipping downward passing the 20MA red line. 

Foreign Fund and Retail Investors continuously selling will lead to a down-trend in KLCI. If you are following the chart that I post daily, you may see Foreign Fund's daily activities - selling, collecting profit and slow buying on these days.  The concept of "If.. Then.. " is very useful in forecasting what will happen in our market. With this concept, you may easily detect what will be happening in upcoming trend. Do not feel surprise that if KLCI is in green then the chart showing that it is breaking below 20MA and bearish. Since most people are unfamiliar with Technical Analysis, they will not be able to detect this movement. And thus making unnecessary mistake in trading. 

This is how I perceive the movement of KLCI with the guidance of my sifu Mr Lee. Technical Analysis is one of the most important elements for us to consider if we intend to have a profitable trading. 

24/5/2012

Foreign Fund continuously exit?

In this circumstances, Foreign Fund had been selling continuously two days which has a leaving signal for us. Trading in these days have to be utmost care. 

The total amount of 4days selling are more than the days of buying. From the understanding means, the signal is telling us that although the KLCI pushed up by Local Fund but this might be just a decoration of trapping local retail investor of panic buying.

With the rumours of GE is coming, do you think that our Local Fund is enough cash to cover our market if Foreign Fund keep on selling? I will leave the decision to you my friends.

23/5/2012

Signal of Bearish?

Foreign Fund in these days selling is more than buying, so we have to be cautious on the movement of them. Maybe they are leaving our market due to the eurozone crisis endless issue. 

Foreign Fund selling signal is ringing, it is just like a warning of Stock Market Tsunami. During these time, you have to find a chance to sell off and stay side way. 

22/5/2012

KLCI in green?

CI is in green but the local fund and retail is selling off and taking profit while Foreign Fund is keep pumping up our market. The chart of the FBMKLCI is a small white candle which showing a uptrend. Signal of bearish is still not so strong while we can see Foreign Fund still injecting strongly in these days.