Most stocks in the US continued to rise despite the Dow closing 40pts lower. 7 stocks rose for every 5 stocks that declined. Financial shares climbed to its highest since July. There's a lot of optimism that the worst is over for the subprime debacle. However, I believe there is still need to be cautious here as the rally to new highs were on low or lower volume (compared to its July highs). The worst is not over yet.
STI opened higher yesterday but ended the day at its day's low. Is this a sign of tiredness? This, I cannot confirm as yet. I believe it is mere profit taking after the strong rally in the past week. Still I see a minor resistance at 3,850.
KLCI is heading towards the 1,392 high again. It could face some resistance here at 1,368 level. A pullback could take place today. Yesterday volume was encouraging but could it be a buying climax? Again, it is still too early to say. Just be vigilant when trading the markets at these volatile times.
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1 comment:
Shooting Star,
What do you think of today's panic selling in the afternoon? Is tsunami coming or just a normal retraction?
Been asking around few friends this evening and all of them sold off this afternoon....
Surewin
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