Wednesday, 20 February 2013

DOW sneezes, the entire world catches the Cold



KLSE is about to face off with twin headwinds:-

1st the endless GE 13 uncertainty both before n after effects.
And the present imminent syndrome of  DOW sneezes, the entire world catches the Cold.

Extra caution should be highlighted now.

The global stock mkt trend, lead by Dow will always take centre stage. 
Dow or S&P 500 indices r hitting full 4 years high without a meaningful deep drawn correction.

There is an early sign of Investment Clock rotating to forex again.
News has it that George S. has already pocketed US$ 1 billion n still counting. 
He has made the 1st cut above on Yen n moving fast to Pound.

The epicentre is showing up in the appreciation of US$ Vs Yen n Pound:

13 Nov 2012     79.55  Yen/US$
20 Feb 2013     93.55      "             Up 17.6%

02 Jan 2013      0.615   Pound/US$
20 Feb 2013      0.657          "        Up  6.9%

There is also other powerful hedge fund manager like D Einhorn acting in the same concert. 
Would this eventually balloon into a full scale financial tsunami ?

That's watch n monitor now how Dow will react n behave in the immediate 2-3 weeks time horizon.

In the last 4 weeks, it was so easy for KLCI to drop 20 to 40 points a day, seems like stepping into quicksand. 

Why so many FA professionals refuse to sell even knowing the probability is swinging towards pureBear ? 

Seriously, Good simple TA knowledge can help n is much easier to master ! 

If u can use so much resources to master FA, I strongly believe the same effort on TA n QA will definitely make one very successful n at the same time have much more quality time to enjoy life to the fullest...


These r words I remember since some 20 years ago from a top CEO of Corporate Singapore who said, 

" In good times prepare for bad times n 
  In bad times prepare for good times " 

He went on to lecture - Every individual stock investor or trader has to experience at least a complete 12 years stock mkt cycle. 
If one learns well in this 12 years period, one can expect to excel for the next maximum of 2 to 3 cycles ONLY in life.  A complete round cycle of primary waves stretches up to
12 years, + - 2 years deviation. 

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