The Importance of Being A "Honest" Trader :-) martin_tf_wong@hotmail.com

6 pm - Bye Bye blogspot. Hello Shiny New Website !

2009-09-11T18:00:00.004+08:00

Bye Bye blogspot. Hello Shiny New Website !

KLSE / Bursa Malaysia

FKLI/FCPO

It's time!!! My brand-new website--you know, the one I've been teasing you with for months now--is live! All entries on the blogspot will end at Friday, Sept 11, 2009. So Friday’s entry will be my last one on this blogspot site.

All of my old blog posts have packed up and moved to the new site, but they will also stay here in case you just feel nostalgic. (Wouldn't you like to be in two places at once?) The website and blog are combined in one handy location, so I hope you will take the time to click around and see what cool surprises you can find.

Be sure to sign the free newsletter worth RM99 for FREE !

Be sure to bookmark the new site, and you can also sign up for RSS Feed so you'll get updates when I post. I can't wait to hear from you!!

Send me comments how I can serve you better?

Please, come visit KLSE2118 website at http://www.traderstruthrevealed.com/

Please, come visit Futures2118 website at

http://www.traderstruthrevealed.com/futures

Rgds,

Martin Wong

Trading Coach

9:42 am - FKLI may form a double top !

2009-09-11T09:42:00.002+08:00

Let's see how it look after lunch !

2:46 pm - FKLI has broken new high waiting for pullback to buy some more !

2009-09-10T14:46:00.001+08:00

9:53 am - FKLI form minor double top at 1205/1206 level !

2009-09-09T09:53:00.001+08:00

9:10 am - FKLI has broken last high at 1189.5

2009-09-08T09:10:00.002+08:00

5:34 pm - A beautiful breakout from here !

2009-09-07T17:34:00.001+08:00

Be ready to take profit !

10:36 am - Market Report II by Bill Wermine.

2009-09-07T10:36:00.000+08:00

Dear Traders,

We held a Master the Markets preview Saturday. 83 PAX attended which were recruited from Martin's Blog/ CIMB I Trade.

9 signed up for our foundation course which is about 11 % . Interestingly, that is the percentage who win in the markets.

Most who came Saturday came for tips/ market outlook/ holy grail .Only 11 % were willing to spend time and money to begin their journey to trading success as evidenced by the number of signups.

I asked how many were bullish and a few raised their hands, the same for bearish. When I asked how many were uncertain and afraid of a big market collapse almost all raised their hands.

Bull markets climb the wall of worry and it seems the majority who came Saturday are worried.

As I mentioned last week LIQUIDITY is the underlying fundamental driving world markets. Liquidity even trumped the jump in US unemployment jump to 9.7 % (highest in 26 years) as the Dow roared ahead over 1 %.

This is a bullish reaction to extreme bad news. Smart investors are moving from paper money to real assets. High quality dividend shares are real assets, commodities also

The breakout in gold proves that. Goldman Sachs, Morgan Stanley, Citi, US treasury officials , all had sell calls in gold before the breakout ! Even the power of these institutions could not stop the breakout.

I went to Maybank last week to buy a 1 ounce Kejang - and they refused my credit card. They said for physical gold they only accept cash. I find that strange. I can buy anything with my credit card but not physical gold.

Because of the big jump in the share price of Am Precious metals, I hesitate to recommend purchases now. Let the powers that be manipulate the price down a bit before jumping in. Wait for a test of the breakout to buy.

AHL Man is long gold and should gold march ahead those who hold Man will indirectly profit by the up trend in gold.

Bill

10:09 am - Market Report by Bill Wermine

2009-09-07T10:08:00.002+08:00

Dear Dr Dorn,

Ted Butler makes some interesting comments and I really appreciate you sharing his article.

I have doubts that top ranked hedge fund traders/ such as Man AHL/ market makers/ exchange specialists could be fooled by Morgan and those who dominate the short position in silver. Perhaps less sophisticated technical traders could be fooled as well as the sheep public/ crooked government SC officials and politicians.

In fact if China were to default on the short silver positions we could definitely profit. I and my clients are holding Ammb Bank Precious Metals which holds physical silver/ gold/ and mining company shares. This is a local unit trust and the only mining trust available in Malaysia.

We also hold physical gold.

When you describe your mountain adventure I can imagine being there- in fact it reminds me of a trip to the giant redwood national park in California a few years ago. We were engulfed in fog and we were forced to sleep in our rented car for the night as it was too dangerous to drive.

In the morning the sky was clear and I never forget the majesty of the massive trees as they towered up to the sky. We drove down the mountain after enjoying the redwoods and had a great breakfast at a diner.

Isn't life great !

Have a great day
Bill

Martin, maybe you could post the Ted Butler article on the blog- a very useful and insightful article for our gold investors.

We wud only send the article to subscriber only.

Join our mailing list, it's Free.

9:42 am - FKLI is ready to break higher today !

2009-09-07T09:42:00.001+08:00

5:23 pm - FKLI has been up 3 days in a row !

2009-09-04T17:21:00.001+08:00

I expect some pullback next week !

2:24 pm - Gold is going to test USD 1000 soon !

2009-09-04T14:24:00.003+08:00

This gold chart is not holding back !

10:17 am - Triple minor top for FKLI.

2009-09-04T10:20:00.003+08:00

Let's see if it can break upward !

4:08 pm - FKLI is testing higher tomorrow and ready to break 1180

2009-09-03T16:07:00.002+08:00

9:17 am Good support at S1 1163/1164 level

2009-09-03T09:17:00.002+08:00

5:51 pm - FKLI set to test higher tomorrow !

2009-09-02T17:51:00.002+08:00

10:55 am - DJIA set to break down the trading uptrend channel !

2009-09-02T10:55:00.002+08:00

9:24 am - FKLI breaking down - be ready to take profit soon !

2009-09-02T09:24:00.002+08:00

5:26 pm - FKLI looks set to sell down ???

2009-09-01T17:24:00.001+08:00

11:28 am - Market Report by Bill Wermine

2009-09-01T11:28:00.004+08:00

Dear Traders,

If there is any lesson to be learned from the movement of stock prices in the KLSE in the last 2 years it is that expectations drive stock prices far more than fundamentals. Psychology trumps reality every time.

The top 20 central banks are simultaneously conducting the biggest money printing operation in history, aiming to inflate global stock markets higher. The group of 20 meets in London next week to discuss maintaining ultra low interest rates for the rest of the year.

The September and October effect which have had the reputation of being the graveyard for many bull markets but with crude oil, gold, the AUD, copper, rubber, base metals rising this reputation does not hold water this round. Liquidity is the driver - not fundamentals

This should slaughter the short sellers of the Dow on course to Dow 10,000 and by proxy, a futhur push in the KLSE.

For daily updates on the KLSE/Futures visit Martin's blog klse2118.blogspot.com.

We have a KLSE preview next Saturday 2 to 5 PM of our Master the Markets program at my office at Phillip Wealth Mgt. Using Martin's blog- we have recruited 94 PAX who called Dolly. The 50 % rule says about 47 PAX will show up. The training room only holds 40 so it is first come first served- latecomers will have to stand or wait in the reception area. We will rig a speaker for the reception area if we need.

Our course is about market reality and how to profit from CNBC lies, misinformation, propaganda, hype, manipulation and the psychology of the sheep investor.

Read Below of how Goldman Sachs cheats and violates securities laws to benefit their insider clients. They were caught by the Securities Commission and may have to pay a multi- million fine for front running and fraud. Remember most of the US federal reserve board governers, treasury secretaries etc - such as Tax cheating treasury secretaryJimmy Geithner are alumni of Goldman Sachs.

Could this culture of cheating Goldman retail clients carry over to cheating the US taxpayers ? Goldman cheats the retailers to benefit their multimillionaire insider clients.

We as price and volume traders can know what they are doing before they do it ! Insiders can not hide from the volume prints.
which are the footprints of the smart money. This is the main focus of our course.

At many firms, traders, salespeople and analysts hold early-morning calls to review ratings changes, recommendations and market events. Throughout the day, analysts talk to key clients to help them interpret research reports and provide more detail on specific events such as earnings.

Continue to hold your quality dividend KLSE shares. No evidence yet of trend turn. I will post on Martin's blog when there is evidence of the turn. WE will not get the top but we will get a nice piece out of the trend. Our job is to make money- being right is an ego or need to be in control issue.

Have a profitable week
Bill

11:18 am - FKLI gap down after Shanghai sell down almost 6-7 pct.

2009-09-01T11:17:00.001+08:00

5:08 pm - FKLI is ready to test 1180 next weekly - Looking from a 4 hrs chart.

2009-08-28T17:04:00.002+08:00

11:38 am - If DJIA does not pull back next week, DJIA is ready to test higher !

2009-08-28T11:38:00.003+08:00

9:31 am - FKLI not that strong to push higher !

2009-08-28T09:31:00.001+08:00

Let's wait until after lunch. It is also rollover today !

5:59 pm - some short covering at last 10 mins !

2009-08-27T17:59:00.000+08:00

That's why it pushes the prices up !

9:43 am - As the FKLI market is moving sideway...

2009-08-27T09:43:00.004+08:00

Let's look at the longer time frame 4 hrs. Resistance between 1185 and 1150.

8:56 am - FKLI opened almost unchanged !

2009-08-26T08:56:00.002+08:00

May see some movement this Friday !

4:31 pm - FKLI is tested high yesterday and likely to move sideway !

2009-08-25T16:30:00.002+08:00

11:34 pm - FKLI has support at 1168/1170 level

2009-08-25T11:34:00.002+08:00

9:26 am - There wud be some profit taking today !

2009-08-25T09:25:00.000+08:00

4:41 pm - FKLI shud close at 1178/1179 level !

2009-08-24T16:40:00.001+08:00

2:42 pm - FKLI hit 1180 high today !

2009-08-24T14:42:00.002+08:00

There's a lot of resistance 1181-1186 level.

11:38 am - Market Report by Bill Wermine

2009-08-24T11:38:00.002+08:00

Dear Traders,

Despite the recent 20 % correction on the Shanghai Index, the index Friday found support at the June 09 pivot high.

It appears the Politburo wants to knock the speculators out but not engineer a bearish trend. They may instruct their 200 billion soverign wealth fund to buy bank stocks.

China's liquidity problem is an overabundance of liquidity, not a squeeze.

You may buy FXI on a pullback to 36 on climactic panic selling/test of supply with a risk to 33.75 and a target of 46.

Most of the bears and pessimists are frustrated so they need to get a magic marker and etch the word LIQUIDITY on their foreheads to be constantly reminded what drives the world markets currently.

When waves of selling engulf the market and drive stock markets lower the selling suddenly dries up and market prices begin to rebound again with no apparent news. The answer is liquidity.

This applies to the KLSE as well. I know many of you are pessimistic and are looking for reasons to sell- but liquidity overrides the uncertain fundamentals. Unless we see wide range up bars on huge volume (Hidden Potential Selling) as insiders use this to offload- better you should stay the course. Keep your quality shares. Maintain risk levels.

Fed chief Bernanke told central bankers gathered in Wyomings Grand Teton Mountains to be careful about withdrawing liquidity from the market too soon.

Have a profitable

9:15 am - FKLI gap up higher due to DJIA breaking new high !

2009-08-24T09:14:00.001+08:00

Another bull in the making ???

10:25 am - DJIA has broken new high with vol !

2009-08-22T10:25:00.002+08:00

We may have a new bull in the making ! No sign of weakness yet for DJIA.

5:21 pm - FKLI is holding up at 1156 support level !

2009-08-21T17:21:00.001+08:00

12:20 pm - FKLI break thru 1156 support level !

2009-08-21T12:20:00.001+08:00

9:57 am - FKLI is testing lower today !

2009-08-21T09:57:00.003+08:00

Watch out for 1156 support level !

4:58 pm - FKLI is holding on at 1154/58 support level

2009-08-20T16:58:00.001+08:00

2:04 pm - FKLI is holding higher at 1156/1158 support level !

2009-08-20T14:04:00.001+08:00

5:16 pm - FKLI begun to selldown !

2009-08-19T17:16:00.001+08:00

Let's see how much DJIA is going to fall tonite !

2:53 pm - FKLI cannot hold up as Shangha is down almost 4.6 pct

2009-08-19T14:53:00.001+08:00

Selldown !

9:29 am - FKLI looks set to move sideway !

2009-08-19T09:29:00.002+08:00

It wud test for buyers at the resistance 1161 level and sellers at 1155.0

5:51 pm - FKLI rebound back in the afternoon !

2009-08-18T17:51:00.000+08:00

1:57 pm - FKLI is breaking down but finding support at 1155/1154

2009-08-18T13:57:00.001+08:00

9:26 am - FKLI not going to drop much today !

2009-08-18T09:26:00.002+08:00

Yesterday, it dropped too much !

5:35 pm - With FKLI selling down, we might get a rebound tomorrow !

2009-08-17T17:35:00.002+08:00

3:20 pm - FKLI really selling down now !

2009-08-17T15:20:00.000+08:00

Ready to take profit today !

12:06 pm - FKLI has dropped and holding its position !

2009-08-17T12:06:00.001+08:00

Shorted this morning !

10:18 am - Market Report by Bill Wermine

2009-08-17T10:18:00.001+08:00

Dear Traders,

Bob Farrell was chief market strategest for Merrill Lynch from 1967- 1992. He had 10 rules for investing. Rules 4 and 5 apply today with most world markets and to a lesser extent the KLSE.

4. Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways
This is Farrell's way of saying that a popular sector can stay hot for a long while, but will fall hard when a correction comes. Chinese stocks have had a 100 % rally and last week a 12 % drop. The investors who came late to this party have been sorry.
5. The public buys the most at the top and the least at the bottom.

Those KLSE shares that have had the biggest runs will have the biggest falls.

Suggest moving your risks up to protect profits on all your shares and be ready to buy back once should you get taken out once
the correction runs its course. Be happy with a profit but do not expect to get the top.

A big drop in the China markets could trigger the correction.

Mark Mobius, chairman of Templeton asset mgt warned of a 30 % correction in Asian stocks as companies take advantage of the rally to sell more shares. Perhaps that is why Maxis is being relisted ? Sell at the high. That is what a good businessman does.

The AUD looks well supported as Bank of Australia is signaling higher interest rates to hold back inflation. 3 Month
T Bill futures in Australia tumbled to the 96, to yield 4 % far above the RBA 3 % target rate.

The IMF on the eve of the 2 year anaversary of the banking crises calculated that the cost of rescuing the system is close to 12 trillion USD- 10.2 trillion is from the US, Europe and the UK. Only 1.8 trillion is from the rest of the world including India, Asian countries.

That is why the IMF said Asia may decouple from the Western countries and lead the recovery.

In any case wait for a good drop in the market before venturing.

Have a good week
Bill

9:16 am - FKLI is selling down this morning !

2009-08-17T09:15:00.001+08:00

3:12 pm - FKLI hits a resistance as regional mkt Shanghai facing selldown !

2009-08-14T15:09:00.003+08:00

11:05 am - DJIA does not look it is ready to move down yet .

2009-08-14T11:05:00.004+08:00

Want to see what it does tonite ?

9:23 am - FKLI is set to test higher, building a base from here !

2009-08-14T09:23:00.001+08:00

9:18 am - DJIA is not ready for a down slide yet ???

2009-08-13T09:18:00.003+08:00

It did test above 9400 level.

9:16 am - KLCi is holding its down slide for today !

2009-08-13T09:16:00.002+08:00

Let sell if the trend wud reverse back to up after lunch !

9:14 am - FKLi gap up due to higher closing DJIA !

2009-08-13T09:14:00.001+08:00

3:26 pm - FKLI breaking down as regionals are selling fast !

2009-08-12T15:25:00.001+08:00

Got out and cut some of our long positions !

(No charts available)

9:40 am - Picture of no demand for DJIA !

2009-08-12T09:40:00.001+08:00

9:26 am - Nothing much today !

2009-08-12T09:26:00.003+08:00

5:51 pm - FKLI continue to move sideway as per KLCI

2009-08-11T17:51:00.003+08:00

Look at this 4 hrs chart, FKLI is either accumulating or distributing.

4:07 pm - FKLI moving sideway !

2009-08-11T16:05:00.002+08:00

12:11 noon - FKLI is breaking up now !

2009-08-11T12:11:00.001+08:00

9:17 am - FKLI likely to move sideway today !

2009-08-11T09:17:00.001+08:00

We reached yesterday high at 1189.5.

5:43 pm - Expect some selling tomorrow for FKLI

2009-08-10T17:43:00.001+08:00

FKLI did selldown at the end. DJIA futures down -3 pts.

(sorry no charts as I have problem posting them).

10:14 am - Market Report by Bill Wermine

2009-08-10T10:14:00.002+08:00

Dear Traders,

We held our traders club meeting at CIMB auditorium today. Nigel Foo gave his outlook and it was bearish for everything. He showed an Elliot Wave chart with the Dow/ KLSE in an extended wave 2, known as the sucker wave.

He said it will suck in the majority of players who are 88 % bullish acording to the sentiment indicator he follows. This was the same sentiment level at the 2007 top. Once the rally wanes the Dow is on course to 5000 and the KLSE to 600.

How do we protect ourselves in this scenario? Watch for no demand price bars, upthrusts and hidden potential selling confimed by volume/price spreads. In this way we protect our accumulated profits on our quality shares by exiting at the time professionals/ smart money are moving to the exits.

We played 4 video clips from the documentary Broke in America by hedge fund manager Michael Covel as he explained how the government controlled media in the US cheerleads for the vested interests such as Goldman Sachs, Obama and his band of socialists. We showed a clip of CNBC front man Jim Cramer whose job is to lead the sheep investors to slaughter by recommending hot tips to make fast money as his insider friends offload. He is nothing more than a pimp for the prostitutes he serves.

Insider sales as reported to the exchanges is at the highest level since the market top in 2007. Insiders include CEOs, institutions, hedge funds, professional investors that trade size. They are the smart money and you have to ask why are they selling when all the news is bullish ?

As a trader I try not to have opinions or make forecasts but my mind is open to views from those I respect. I then use my charts facts and logic to confirm what they say. This will lead to opportunity be it on the long side or the short side.

Based on the US Government's easy money policy- Bernenke has pumped 1.75 trillion dollars into the big US banks while slashing interest rates to 0.25 % to counter the worst banking crises since the Great Depression. The Fed's ultra easy money policy may have sown the seeds for an outburst of inflation when economic activity picks up.

The CRB Index supports this view. The CRB is a basket of all the major world commodities- grains, precious and base metals, as well as soft commodities.

As investors and the public lose confidence in currencies they accumulate commodities- witness the Chinese who are accumulating virtually all commodities as they reduce their holdings of US Bonds.

CRB Monthly chart shows a rounding bottom over the last 9 months as professionals accumulate commodities anticipating a return of inflation. There is more room to go up than to go down. The CRB supports the inflation scenario.

We also plan to post Nigels presentation on Martin's blog as we move toward servicing you via the internet. Many of you live in Penang, Kuching, Johor, Singapore and even Indonesia and it is not practical for you to participate in our gatherings. We plan to extend our research coverage as hiring hotels for presentations, travelling outside KL and advertising in the newsmedia has become prohibitively expensive.

Let us have your feedback on this. Martin and are planning to attend a workshop on creating blogs/ setting up an e coaching service next month by a prominent Indian blogger.

Here's a quote from a floor trader of S & P futures- Larry Levin

"And oh, by the way, don't expect any stock market weakness while so many billions are being shoveled out the Fed and into the pockets of the primary dealers. They'll have to do something with all that freshly minted cash....."I think it's clear folks; there is no "free market" and what is left of the stock and bond markets have become a pyramid scheme that makes Bernie Madoff look like a piker. Trade well and follow the trend.

Have a profitable week ahead

Bill

9:15 am - FKLI gap up to minor high as DJIA closed higher !

2009-08-10T09:14:00.001+08:00

2:06 pm - DJIA has breached into new area.

2009-08-08T14:06:00.002+08:00

8:48 am - FKLI is holding up despite regional market down !

2009-08-07T08:48:00.002+08:00

5:06 pm - FKLI is going to test 1190 tomorrow !

2009-08-06T17:06:00.002+08:00

9:14 am - FKLI hit 1 lot at 1169 and reverse to hit 1180 !

2009-08-06T09:14:00.001+08:00

Wild morning !

5:46 pm - I wud like to see FKLI to break out from this 4 hrs chart !

2009-08-05T17:46:00.002+08:00

But there is sign of weakness on the backgrd.

2:53 pm - FKLI selldown due to Shanghai Index !

2009-08-05T14:53:00.000+08:00

9:35 am - FKLI tested 1179 three times - strong resistance here !

2009-08-05T09:35:00.003+08:00

5:33 pm - FKLI is getting weaker as DJIA futures is losing steam !

2009-08-04T17:33:00.002+08:00

9:50 am - Traders club meeting Sat 8 Aug 2009

2009-08-04T09:49:00.000+08:00

Dear Traders,

Our Traders Club will be on:

Saturday 8 August

Time : 10 am - 12 noon.

Venue : CIMB Auditorium, Damansara:
Here is the map http://martinoffice.blogspot.com/

Nigel Foo, head of research for CIMB has agreed to give his market outlook this Sat. If you have anything to share with our group please let me or Martin know.

We will also show some clips from Broke in America, an underground documentary by hedge fund manager Michael Covel and brief interviews with some of the most prominent traders in the world including market wizard Larry Hite.

This movie documents the financial disaster and how the media is the tool of the smart money to strip the sheep of their hard earned money by market manipulation, fraud and deceit. All you price and volume traders will understand how this is done.

Please Let us know if you wish to attend as seats are limited.

Have a profitable week
Bill

9:42 am - FKLI tested 1179 but resisted !

2009-08-04T09:39:00.002+08:00

5:24 pm - FKLI is still hanging on !

2009-08-03T16:44:00.001+08:00

10:27 am - Market Report by Bill Wermine

2009-08-03T10:27:00.001+08:00

Dear Traders,

We may be soon reaching an inflection point. Shanghai is trading at 35 times earnings while Shenzhen is at 45 times while both indexes are up over 90 % this year. Advise to take profits on your China Fund positions and move into gold.

These indexes are in an expanding bubble as sheep investors chase these indexes ever higher like sharks in a feeding frenzy. China markets are prone to sudden meltdowns- last week there was an 8 % drop at one point before recovering later in the week.

Should there be a savage 20 to 30 % correction in China this will pull down world stock markets including the Dow and to a minor extent the high flyers in the KLSE.

How do we preserve our capital in these dangerous times ?

Some talking heads with expensive suits on Bloomberg and CNBC say buy the US Dollar . These fellows are front running for their insider clients who are on the sell side. Remember any information that is free is suspect.

Unfortunately the Dollar Index is in liquidation mode having broken a major support @ 77 on course to a mutiyear low of 66. A few weeks ago I recommended you exit US Dollar currency positions- the advice still holds and buy gold and AUD . You may buy the GDX ETF fund or Am Precious Metals Fund.

George Bernard Shaw advised in 1928 " You have to choose between trusting the natural stability of gold and the honesty and intelligence of members of the government. I advise you, as long as the capitalist system lasts, to vote for gold, "he said.

This advice still stands.

Gold is propped up by ultra low interest rates around the world and massive amounts of money injections by central banks into the global money system.

Hedge funds such as Man are borrowing USD at interest rates close to zero and buying, the AUD at 3 % as well as commodities and stocks. This puts more pressure on the USD.

Do not be afraid of the KLSE corrections and shakeouts that are a natural act. They are the friend of the smart money as they allow ownership to transfer from sheep investors to market tigers. In my managed accounts am maintaining 20 %cash to exploit any shakeout. Will continue to hold our super blue chip dividend payers and Man AHL which is our port in the storm.

For those with Ameritade accounts you may buy the DBA - a grain comodities ETF fund. Soybeans have fallen over 30 % from the highs- and soybean stocks are historically low. With a weakening US dollar, there is limited downside but room on the upside.

This is a simple play- nothing complicated about buying corn, wheat, soybeans, palm oil, rice- no worry about a fraudulent balance sheet
and mulitmillion bonuses to crooked bankers. In fact futures contracts for grains on the CBOT are highly regulated, simple to understand and transparent unlike most other investments available to the investing public. This is also a hedge against currency volatility and stock market collapse.

Have a profitable week,
Bill

9 am - FKLI gap up due to oversold last Friday !

2009-08-03T09:00:00.002+08:00

DJIA did not drop at all !

9:16 am - DJIA formed uncertainty after breakout !

2009-08-01T09:13:00.001+08:00

9:16 am - DJIA has a 18 L/C !

2009-07-31T09:16:00.002+08:00

9:09 am - Taking a look at Aug contract - It is moving up now !

2009-07-31T09:09:00.002+08:00

5:29 pm - FKLI is holding up !

2009-07-30T17:29:00.001+08:00

2:55 pm - FKLI rebound to test higher as Shang Hai is recovering today !

2009-07-30T14:55:00.002+08:00

9:25 am - DJIA is facing some resistance here !

2009-07-30T09:25:00.004+08:00

9:09 am - DJIA did not close lower and FKLI gap up and looks weak now !

2009-07-30T09:09:00.000+08:00

9:31 am - FKLI is well supported at 1175.

2009-07-29T09:31:00.002+08:00

Mkt push higher as regional markets recovered !

4:19 pm - FKLI has broken up !

2009-07-28T16:19:00.002+08:00

It is ready to test higher !

9:30 am - FKLI begin to test for the old high !

2009-07-28T09:30:00.001+08:00

Watch out for the breakout today !

3:47 pm - FKLI has gone sideway !

2009-07-27T15:47:00.001+08:00

10:31 am - Market Report by Bill Wermine

2009-07-27T10:31:00.001+08:00

Dear Traders,

While in Singapore for a business trip last month, I picked up a book Investing Against the Tide by Anthony Bolton, Bolton was head of Fidelity Asset Mgt in London before recently retiring. He is a humble low key individual who does not like public exposure and his book is his parting gift.

His performance for the fund he managed averaged over 20 % per year over 19 years which rivals Warren Buffet. His performance was steady and consistent with a maximum volatility of 18 % meaning his worse
loss was 18 %

He also used technical analysis to filter his fundamental picks. He said he was only right 60 % of the time and remember he had access to the best research, technology and business contacts. He also always established an exit plan on all his investments both for profit or loss.

What is interesting is a statement he made related trading to golf. In golf there is a term called Mulligan. Mulligan means you get a second chance after making a bad shot. In the stockmarket there are plenty of mulligans. Rarely do you only get one chance. If you miss the chance for a good entry it is likely you will get another chance. In otherwords it is a bad idea to chase a trade. Just be patient.

Presently the KLSE is extreemly overbought. The crowd is super bullish. All the news from CNBC, Bloomberg, The Star, The Edge etc. is bullish. The world wide recession is over proclaims most stock broker houses. In fact my seminar indicator tells me a different story. We have a full house for our Master the Markets Foundation Course Monday. This was without advertising or holding previews. In fact we have to turn people away because the room is full.

We are getting calls from previous preview attendees as far away as Penang/ Sabah and Johor, who have finally committed to attending after months of soul searching and worrying about paying our very reasonable seminar fee.-

My seminar indicator means we are close to the top. When we only get 5 or 6 attendees we are close to the bottom.

My advice is focus on high quality dividend payers and buy tests of recent supports on any bad news and carefully define an exit plan.

There is more risk on the downside than reward on the upside so you need to carefully manage your trades.

For our Wrap account holders, our AUD currency Man investments are earning good currency gains while the fund has had some losses. Should trends emerge the Man Fund should do well both from the AUD side and the fund performance.

The AUD/ RM rate appears ready to break the RM 3.00 level on course to RM 3.26. I also like the EWA, the Australian Sock market ETF as the Australian market has a lot of swing freedom for another 16 % rise but: Remember to wait for your Mulligan.

Have a profitable week ahead,
Bill

10 am - FKLI gap up and begin to selldown !

2009-07-27T09:59:00.001+08:00

The market is weak today !

4:49 pm - FKLI is moving sideway but downside movement is limited !

2009-07-24T16:49:00.003+08:00

2:45 pm - FKLI will move sideway first !

2009-07-24T14:45:00.001+08:00

10:26 am - FKLI starting to break down !

2009-07-24T10:22:00.001+08:00

9:58 am - KLCI started to look weary !

2009-07-24T09:58:00.002+08:00

It may set to congest today or even lower !

8:54 am - FKLI gap up due to DJIA !

2009-07-24T08:54:00.001+08:00

4:18 pm - FKLI has broken down !

2009-07-23T16:18:00.002+08:00

10:01 am - FKLI has volume coming in !

2009-07-23T10:01:00.002+08:00

9:44 am - FKLI has faced resistance at 1152/1153 level

2009-07-23T09:44:00.002+08:00