Apparently KLSE is down today due to "fears" about high oil prices or maybe even drying liquidity. If it were up, it would have been because of our improving fiscal position, or exports, or the 9th plan or whatever. The truth is nobody knows. High oil prices are a macroeconomic phenomenon affecting fundamentals and should never be used to explain the daily gyrations of any stock market. It may keep journalists in a job, but it will kill your portfolio if you become mesmerised by things like this. Somebody once said that if you spend 5 minutes thinking the economy then you've just wasted 3 minutes.
As traders, we have to shut all this out and listen to what the market is telling us. Perhaps one day we will have all the market information we need and be able to get rid of analysts and research houses completely. Unfortunately that is just a pipedream for now and we continue to rely on piecing together disparate truths like a jig-saw.
Anyway we are consolidating and I'm inclined to look for support before diving in again. Most of the stocks on my watchlist are down but on relatively low volume. Despite the KLSE gaining ground yesterday a lot of counters were also being sold so this correction is due in my books. So I'm just waiting and getting a bit pickier with my entry points. Also added TSH and Hiaptek to my watchlist (more good companies).
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