Saturday, November 12, 2011

Are our necks still intact?

If our necks continue to be whipsawed -- up 3% one day, down 5% another day, I'm not sure our necks will still remain intact after a while. An environment like this is a heaven for speculators. Most of market players feel that the markets cried wolves too many times. The politicians are well trained to say the right things to soothe the players. Market events as if has become a TV commercial break, so just go to the toilet , our favourite TV show will resume after the pee.

The speculative on low liner stocks activities in the KLSE is very unusual. In fact some new terms have been invented, they called it PUNTA-MENTAL. I think I used pretty strong language yesterday like orgies. The way some of these guys behaved like totally disconnected from the world. They operate by just looking at charts. I pull three of the top volume stocks for you to see. The common patterns

1. decline for a long time
2. form a base and rebound with nice volume
3. no fundamentals or what so ever
4. they probable will use all kind of technical indicators like moving average, Fibo retracement, resistance, set their target price.

The return is seductively inviting. It's like a supermodel lifting her skirt very slowly. She promised you fun with no string attached. You are salivating, your heart is pumping and head is clouded, will you take her offer?[It's a trick question, think carefully. Added @ 4.03 pm]

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