Friday, May 11, 2012

Been a while......

It has been a while I shut my radars on the markets. Though the market momentum begin to let go some steam off, it's still not good enough to entice me to get back into the markets both from big picture or stock level.

I think we all saw the headlines of changing political landscape in the Europe had created some uncertainties and fear. Continuity of earlier pledged austerity programs are under scrutiny now. It has certainly added some downward pressure but I do not think it is the main cause. The US regional bank index was already under pressure since March and now appears to be in correction mode on the down side. Whether this will trigger a free fall or not, like last late July or August, we will have to wait for a while.

The trading participation in our Bursa seems to have a slight change in trend. The local institution trading is backing off slightly but foreign participation is picking up. The local retail group is in bearish or cautious mood. Blue chip may have some support but penny stocks may experience some pressure.

The crude oil is finally get under $ 100 per barrel. I'm not sure whether this is a sign of weakening of global economy but again we should wait a little longer to let more cards to be revealed.

As of now, classic signs of sell in May and go away are getting clearer. Take care.

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