8:55 am - Market Report by Bill Wermine

Dear Traders,

Today we held our Traders Club, at the CIMB auditorium, Nigel Foo, Head of research for CIMB gave a realistic analysis of the KLSE. He feels the KLSE will move ahead to the 1050 level in the next 2 months. He suggests to be defensive should the KLSE hit this level. Be ready to quickly lock in profits.

The top is in if:

News flow is extremly bullish and price stalls out
Retailers are jumping in and volume reaches unusual high levels but price refuses to advance- it means lack of demand from smart money. In fact smart money is selling to the herd of sheep investors.

Positives include a more business friendly PM, lifting of the 30 % Bumi quota for selected industries, and a resurgance of world markets.

Underlying the bullish world stock environment is unprecedented liquidity flowing from central banks- with interest rates at historical lows and an all out push to get credit flowing again. Never underestimate the power of the US Treasury and Federal Reserve. They can create currency out of thin air and they are.

Unfortunately, at some point the piper must be paid.

There will be a black swan event. An event that can not be predicted and the house of cards will collapse.

That is why we shared the ways of investing in gold. Gold is the ultimate safe haven and every investor should have exposure.

I apoligize to all of you who came to hear from the gold fund manager from Am Bank who was scheduled to come. He never even had the courtesy to call me that he could not come.

Luckily we had a film clip from hedge fund manager Michael Covel with comments from Jim Rogers and George Soros who in my opinion carry weight. All 3 are recommending gold exposure of 5 to 10 % should the currency printing bubble explode.

Also Martin and Nigel shared some excellent research to support holding gold.

In any case, we will hold our gold conference at the Armada Hotel on 10 May Sunday from 2 to 5 PM.
Cover charge is RM 25. This will be in more depth than what was presented today.

Let me know if you wish to attend as seats will be limited. You may pay/egister at the door.


Martin will share a powerful gold trading system for you technical traders. He will share the backtesting results which prove the system has positive expectation.

This system is medium term and works in timing Gold Unit Trusts, Gold ETFs. and gold futures.

I have done some research on the various gold scams perpetuated on local investors that you need to be awair of. I will speak on this. In times of uncertainty and volatility fraudsters are very active and we need to know how to protect ourselves.

Bottom line, only deal with locally regulated dealers. This also applies to FOREX trading.

Attached is an article on gold I wrote for Malaysian Business last month.

Have a good week ahead
Bill