FKLI And KLCI Updates

Recall that in my last post, I recommended taking partial profits on our longs and putting a breakeven stop on the rest of our positions. Markets are not always predictable, and our stops save us from letting the position turn into a loss, a big no no in the world of trading and investments. Never ever let a profit turn into a loss! The current sentiment is very very bearish and not surprisingly, many analysts have turned bearish on the outlook of the market. Whilst I agree that the current technical picture is less bullish compared to weeks earlier, all is not gloom and doom and the market is FAR FROM going into a bear. In fact, at current levels, it is a good time to be accumulating quality stocks. FKLI futures as well as the general market is due for a rebound soon. There are a myriad of factors affecting the markets at the moment including the big Dow, crude oil, inflation, ringgit factors, interest rates etc. We will turn into a bear when there are enough signs of it. The Dow Jones is a big factor here and the possibility of a big drop cannot be discounted. At the moment, we are not in a bear market YET. Until the next update, happy trading!