Sunday, August 16, 2009

Reasons For KLCI To Correct

I have been looking and waiting for KLCI to correct since the index hit 1000. The bull has been very strong and I had no chance to buy my list stocks for long term investment. There was no major correction since recent rally started in March 2009. I have been finding the reasons for KLCI to correct.
The following are my reasons: (not many reasons yet)
1) KLCI reached 50% Fibonicci target of 1162.98 and advanced to 1196.46
2) The index has been up for almost 5 months. History has been showing us that KLCI rally usually not more than 5 months (sometimes it does, fo course).
I am not saying the markets will drop immediately, it is certainly advisable to get ready.
I sell some of my stocks and buy back when price reach 10% below my selling price. I will also short index future (FKLI) for some profit.

No comments:

Post a Comment