10:24 am - Market Outlook by Bill Wermine

Dear Traders,

Today I attended a market outlook by Pong Teng Siew, Head of Research of Jupiter Securities. There was a full house, standing room only. Mr Pong is a highly regarded analyst and has been able to consistently forecast KLSE market turns. He feels 802 is the near term bottom because credit markets world wide are unfreezing. The new fear he said is world wide recession which 1/2 of the developed countries including the US, UK and Europe are in. however; markets turn in the depth of a recession as players anticipate an economic upturn.

He suggested to be in defensive mode. Avoid property, construction, banking, auto and airline shares as the economy is slowing. On the other hand, he recommends Sime, TM and PPB Group due to defensive qualities and solid dividends. I hold these shares for my managed accounts.

He also forecasts a recovery in crude oil and CPO as these commodities are deeply oversold and are trading at less than fundamental value. He also feels the US Dollar will resume its fall as credit markets unfreeze and the US prints money to bail out the banks, auto companies, un employed workers, housing etc. Obama will print massive amounts of US Dollars to fulfill his election promises.

We are holding our monthly Traders Club at Phillip Capital Office on 15 November at 10 AM . If you have any topics you wish to share please let me or Martin know.

I will present an interesting study on Gap trading in the CPO and CI Futures and how to use volume to confirm the success of a gap trade. I need someone to present on point and figure.

Have a good day
Bill