Tuesday, August 14, 2018

Market Outlook as at August 13, 2018

Our market declined broadly yesterday in line with decline in global markets. This global decline is brought on by uncertainty and confusion generated by reckless action in Washington- the latest being tariff to be levied against Turkey. We will never be able to keep up with a madman, and we will do more harm to ourselves if even tried to match. For that reason, we must avoid being suck into the fear-and-greed cycle and keep calm in this man-made storm. 

Looking at the major indices in our market, I believe that FBMKLCi & FBM70 are merely consolidating after a sharp rally while FBMSCAP & FBMACE are getting ready to follow in the footsteps of FBMKLCI & FBM70. This period of uncertainty could be a time for us to slowly buy into beaten down stocks.


Chart 1: FBMKLCI's daily chart as at Aug 13, 2018 (Source: Shareinvestor.com)


Chart 2: FBM70's daily chart as at Aug 13, 2018 (Source: Shareinvestor.com)


Chart 3: FBMSCAP's daily chart as at Aug 13, 2018 (Source: Shareinvestor.com)


Chart 4: FBMACE's daily chart as at Aug 13, 2018 (Source: Shareinvestor.com)


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