KL Mart after 6 consecutive days of Dropping (27/01/2011)

If you ask any broker or remisier out there, they may show their unity in explaining the 2 weeks down trend of KLCI, by saying "Pre-CNY profit-taking ma". Sounds so familiar every year? Yes. This is a very good excuse for them or even fund managers to explain the sudden down trend, which caught many investors who jumps in the 2011 new year rally just three weeks ago.

Pre-CNY surprise?

When will market rebound?

Today, investors are experiencing a KLCI rebound, be it technically or not, right before CNY next week. Before this, many of us are predicting a "risky" January, given the rich valuation KLCI commanding after 2010 run-up. In December 2010, we are still in a very cautious mode, only to find out that KLCI reaches a fresh one week all-time high right after 2011.

The rally caught investors by surprise, and the great profit-taking too...

KLCI are expected to rebound after yesterday morning staggering 20 points slump, only to recover shortly to close 6 points down. Technically, this shows a "hanging hammer" sign which signals a potential technical rebound soon. (Proofed by today's performance)

Would it still counted as "Pre-CNY" profit-taking?

Finance Malaysia thinks that the market is in an opposite trend comparing to previous years. Normally, the so called profit-taking will kicks-in right before CNY (supposedly today). However, this year is a little bit different. The profit-taking activities came earlier, and investors are going back to the market right before CNY. Would it be a double profit-taking this year? Let's see...

After the current down which ends yesterday, we may look at those stocks which battered down most since 17th Jan high.

RHBRI: Bottom 20 stocks under RHBRI coverage ranked by Absolute performance since 17th January 2011 High