By: Bullseye
20/05/2013
Topic: GE 13 Fever Over... Whats Next?
Dear Readers:
GE 13 has over... although the results were NOT too welcomed by the majorities, but it is expected... Life still has to go on, trading has been in the 'cooling off' period for way too long, perhaps, we can emphasize on the market once again?
Lots of happenings had occurred causes some traders in a distress manner as they might have faced severe 'losses' in FKLI due to the odds during the pre - election and post election period. Many people were hoping for a GE 12 miracle to happen but the table has been turnaround... Why is this so?
Myth 1: Foreign Funds Manipulating The Market.
Our mainstream news providers tend to shed some highlight to us that there are many Foreign Funds had entered our market before the election and perhaps this has been the influential reason for the bullish market... Prime Minister Dato Seri Najib did mentioned that Barisan Nasional's (Nasional Coalition) victory has boost the confidence of the market and hence a brighter future has arrived.
Myth 2: Government's Investment Arm Are Performing This Bullish Show.
We understand that the above possibility may be true but bear in mind, we are keeping this statement as a form of reference due to the fact that the market's bullish effect were caused by the 'blue chip' companies or 'GLC', as such the market's trading pattern were Value > Quantity. With this it is hard to determine whether the Foreign Funds effect did eventually took place because these so called Foreign Funds can be manipulated by the Government's Investing Arm as well.
Nevertheless, the biggest question here would be.... Where are we heading to? Is our market ready to be penetrated again?
InvestACE's team has done a simple research and therefore we are suggesting the following for your reference:
1) In usual trend, the month of June, July & August would be the unfavorable month to trade as the trend tend to be bearish or slow moving. But we would advice traders to get your funds ready, do more research towards the potential companies, stay tuned to InvestACE for more info and guides about some potential shares to be invested.
2) We also would like to advice traders to do more research on "Petroleum" and "Construction" industry shares as these industries would be the most influential market for the time to come as the government would pay more attention to these industries to ensure stable growth in the economy.
3) We believe that the sleeping bull is indeed half awake and the bull run would start anytime soon. Would this be a small bull like what had happened during year 2008 & 2009? Or would be a replica of a Big / Super Bull trend that replicates the era of 1993 to 1997? Everything has yet to be confirmed but we are confident that the market outcome would be brighter than before because Prime Minister Najib's government has to ensure growth in economy to lure more votes and avoid further humiliation results for GE 14. Regardless of whether this strategy would be useful towards the strong willed Malaysians, who are desperate to have a change (which personally I don't see any problems there). But traders would have this Golden Opportunity to look out for and we are confident that the market would be vibrant again in the near future.
Disclaimer: The information and analysis mentioned above are solely based on Invest ACE’s personal technical analysis with the aid of professional training, decades of experience and meticulous foresight; Invest ACE shall NOT be held liable for any losses (financially or otherwise) incurred by any parties relying on aforementioned analysis without prior professional consultation. Should you wish to find out more on how to invest wisely, do not hesitate to contact Invest ACE via investace126@gmail.com.