Tighten your seat belts!!

US Payrolls were down 4,000 but main street economists were expecting a rise of about 110,000. Wall Street had been awaiting the report all week as it sought to determine how well the economy was holding up under the weight of a faltering housing market, a rise in mortgage defaults and tightening availability of credit. That is a huge difference and Wall Street are saying that US economy could go into recession now. The talk on the Street is that FED could even cut rates before the scheduled Sep 18 FED meeting. Dow was 249pts lower while S&P500 lost 25pts. As I mentioned before last Thursday, Wave-C could have started. And now, it has indeed taking place. With the anniversary of the Sept 11 looming, volatility is also expected to be very high this week.

KLCI and STI should see strong selling from today onwards. Sell, Sell, Sell is still the way to go for both of these markets. Those who have sold their shareholdings up to last week would likely be laughing to the bank :) or at least would likely loose less. Stay away from the markets would be the best option for this week. Tighten your seat belts!!!