If you’re a technical short term trader you should only be out (or short). If you’re a medium or long term trader you’re probably starting to wonder whether it’s time to start accumulating.
This is what’s going on in the minds of most people at the moment, and the reason why I think that a bounce will occur quite soon when the bulls try to reclaim their crown. The question is whether when that comes whether the fearful or the bears will take the opportunity to lighten up and in doing so drive prices further south (maybe into the sub-1000 category).
In the next few days when the market takes a breather and either levels off or turns back up it’s very important to examine that very closely to see what is happening. The texture of the support the KLCI receives will give a good idea over how much fight the bulls really have left in them, because this is probably the first time since last summer the bulls have really been tested. Study it closely. It will provide the tone of what the market is going to be like for the next few months.
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