Wall Street was rather flat yesterday after Bank of America announced losses of $4bn from trading losses, defaults and loan writedowns. Tech shares kept the indices up. S&P500 was 1pt lower. The US markets would likely be sideways again tonight due to expiration of the options tonight.
STI is trading close to its support of 3,780-3,800. A break below would likely see a new consolidation period for the STI. Chinese S-shares would continue to be in the limelight today.
KLCI is also trading close to its support of 1,365-1,367. Local funds appears to be holding the index by nibbling on some of the key blue chips such as TM and Maybank. Tenaga is still under selling pressure. As predicted, construction stocks saw some profit taking yesterday after their recent strong run. A foreign broker also downgraded Gamuda to a Neutral yesterday. Penny stocks would again dominate - look out for PECD, MPCorp. Both ran already yesterday so be careful.
Personally, I remain a short term bear. I expect a pullback next week. Only after a pullback (depending on how far down - that I do not know yet!!), I would change my ST bearish view. If I am a long term player, I would be buying on the way down.
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