Penny Stocks

KLSE equity market giving the surprise when penny stocks hit good profit on yesterday evening. It was also continue gave more gain on this morning. So, the index together with the penny stocks running wild and it has deliver more confident on buying interest.

After a big adjustment on China at Wednesday. Market seems like going to turn down, but continue rally at development countries was gave investor changed their view on equity market. I do not join in this rally because it will not attractive me. The reasons are: -

a) No self confident on every purchase

b) The cashflow in the international market flood, but it did not give any substantial reason to stay on at one market for long period.

c) Durable goods maintained at high price.

d) Consumers market continues weak and can't absorbed the finished good at previous level.

US DJ after 2 days lose about 30 points and the followings day give a positive about 80points, its indicated player has more confident the economic is coming back.

KLSE market kick off those high volume stocks like UEMland, scomi, huaan and mulpha from first page. Is it a signal? I do not 100% agree but step of move up confirmed is slow. So, speculators must stay out for while and collect more data before jumping in again to play.

Bad signal at China

China equity market only allows those specific funds and rejected individual foreign investors buying. This type of market maybe can named semi open finance equity market. So, the funds usually inject to Hong Kong and through HK to invest.

Long term, that is unhealthy for equity market develop. Like Malaysia, heavy weight listed company in KLSE equity market controlled by government. Foreign Investors classify it as unfair game. So, you can see FDI lower than others countries.

When equity market transaction mainly depend on local funds finally bring unfair. Like ASB funds every year can distribute about 20% dividend. The only advantage is, you are easy to capture the movement of the share. If you can make money from KLSE equity market, it does not means you are a good trader. Because you opponent party in klse market just a normal investors. In international and development market, the movement of the share price is totally difference. Skill of manipulated of share in Malaysia equity market do not suitable use at others countries.

The china equity market rally depend on their GLC company. The huge funds awarded by government to them and their speculator in shares and properties market. Malaysia also same, but ours intelligent public servants spend money on unnecessary things. So, difference approaching the funds bring difference effect.

Malaysia market will see 980 points soon. please trade in carefull and patient.

KLSE Construction Stocks Rally

After a long period of sleeping, finally we can see second line stocks perform wild in KLSE market. Just in doubt, how much gain can delivery to investors. As most of the analyst predicted, after a rally of 30 index stocks, now the bullish come into second liner stocks.

Today, have a conversation with one fund manager. He said market soon have a big adjustment. I am not 100% absorb and agree with him. But certain points I do agree and no objection on his comment, Like : -

a) Blue chip start the rally first usually can not given more gain to others.

b) Need further fresh funds to support the base.

c) Durable commodities should not perform as well as equity market.

d) US dollar did not given a good direction to highlighted the demand

I have no objection on the above points of view. Usually a strong resistance broke by certain stocks. The share price will perform wild and achieve higher than previous. But in these 2 months, hardly see such rally on volume stocks. Its was means funds did not strong enough injected into market. Investors have more choice to select.

Current statu is dangerous but not terrible like last years. The maximum adjustment is about 15% on it. So, holding power strong investors have more chance to win this game. So, well prepare in advance always have a chance to well know the coming move.

KLSE Equity Rally Day

30 index link counter at KLSE perform wild again. It was hit above 1160 points again at 10.30am. Speculators have been kick off by this rally because most of the counter need 5 days adjustment. Whoever playing contra automatic kick off.

Such rally brings me more fear because the durable comodities ( Gold, Silver) did not have any adjustment to support equity market continue has a good move. Today Genm hit above 2.93, it was confirm strong and steady move. But this is because due to adjusted its price to meet index point.

Recently, others index link has broke new high and now Genm follow the step. A lot of people ask me which stock can buy. I have give a warning to them. Immediately out from market because the technical issue would not apply on this rally. Like KNM has broke 89.5 but just showing a good volume but didn't give you any profit. Like US DJ broke 260 days MAV but hanging around at that level.

I am hoping I am wrong but if I am right at this round, market will face big trouble. For me I have set Middle of August is a turning point and would give me a clear picture on their move.

Second Board Counter Rally

If you read my article on Thursday . Now you are making so money. Why second board counter has a rally? Because next week their going to merge with main board. So, fund manager can buy in to restructure their portfolio. Perhap such a long period of ignore buying interest on it, now its the time for them be superstar in the market.

Although their are a second board but some has their value and doing a business quite reliable. So, with good fundamental value plus maintain a good turnover will attract more investors taken them into investment portfolio.

Of course, you need enough funds to hold it. If I have support about 300k. The return now is about 30% on it. Coming 2rd August is last day for second board. It become history in KLSE bursa.