From the chart below, we can see that the upside breakout as noted last week is slowly gathering momentum, with indicators moving upwards. If the weekend BERSIH 2.0 rally passed without any untoward incident, I believe we could see a strong rally in the market. The last time, we saw a similar breakout of the prior high was in August 2010, where the market put in a 15%-rally over a 5-month period to reach a high of 1756. Could we do the same again this time around? Let's wait & see.
Chart: FBM-KLCI's weekly chart as at July 8, 2011 (Source: Quickcharts)
At the happening of previous rally, did the government window dressed the market via GLCs or not, ie based on normal market growth? the price seems real from outside, but been manipualted quite often recently.
ReplyDeleteHi Alex,
ReplyDeleteI have a question which would like to ask you. it is regarding Coastal, from FA analysis, latest Q1 2011 report shows that it EPS is 15.48 sen. Let say we annualized it and the full year EPS is around whopping 0.62sen, that mean if we took the P/E as 10, which implies that this counter can be traded as RM6.2.
But currently the price is around RM3.6 which could be posed as good discounted share. Do you think from FA standpoint, it could be a good BUY counter?
Hi Alex,
ReplyDeleteIn some of your articles, you have mentioned that this bull run is the longest through out your remisier career. But each time, the market refuse to fall and hitting new high.
I think that partly due to KLCI is no longer represent the whole market, which is a long discovered fact.
If you look at individual stock, your point has already came to past. Many stocks are already in their own bear market.
By the way, I just copy and past here the followings what i have commented in one of the blog....
Is about someone who called you lulu.
1)He bought few counters. If any one of his counters went up, he will show off. But he only managed to boast few counters for the past many months. Meaning he is not doing well.
2) Some of the members have been experiencing losses. Meaning his recommendation is nothing special.
3) He claimed he has XXX number of members and collected XXX money. By judging the amount that he invested, it does not tally.
4) His recommendation is based on fundamental. Yes, ok. But it is the same as other analysts and makes no different. Nothing special.
5) Based on the compounding effect and the money that he has collected, if he is so great, his investment should be in the hundreds of thousands. But it is not.
Hi ahkuih
ReplyDeleteCoastal is an attractive stock based on fundamental analysis. However, the technical outlook is mixed. You may recall that I had called a possible reversal in this stock a few weeks back. After a slide to a low of RM3.42, Coastal rebounded. Is the earlier technical call wrong? It is too early to say. Let's wait & see.
Hi Polite Market
ReplyDeleteYour observation regarding the market is close to mine. We could have made a Momentum Top while the current action could lead up to a Price Top, which is higher than Momentum Top but with less momentum. On the chart, they would create a reversal pattern, such as a Head & Shoulder formation, Double Top, etc.
I agree with your take on this other weblog, who goes around attacking other people's postings. He seems to think that he monopolizes all the good stock picks and everybody else is not up to scratch. He has one advantage that all of us do not have- he can hide behind the skirt of his private blog and throw missiles at us. I would not pay good money to subscribe for his blog to check out his postings. Best way to treat this type of pests is to ignore them (which may not be easy because he doesn't get tired from his petulant ways) or to regard his childish attack as brownie points. You must be doing something right to earn his ire. He is the Ibrahim Ali of Malaysian Investment Blogging.