The most important advice I can give is to trade with the general market, and not against it. For example, if the market is heading lower but you see a continuation uptrend in a certain stock, it’s advisable not to buy it in most cases. As with all technical patterns, there are failures and the easiest failures come from ignoring the general market direction. Since 3 out of 4 stocks follow the market, any continuation trend can fade toward the direction of the market, so don’t go against the market trend.
As expected, today the stock market open with a panic selling especially at the first 5 minutes. The KLCI dipped as low as 1248.5(-22 points) on the 3rd minute before it slowly gained trend. I usually advice people don't sell their stocks at the first 30 minutes. You normally got the worst price during the first half an hour because buyers not likely to bid higher. Usually it takes about 1 hour to settle down. KLCI continue to gain trend and closed at 1264.3 at the mid-day closing. Technically KLCI is supported by 1263, the next support line is 1250 to 1248. The immediate resistance is 1270. There are 583 stocks losing and 77 stocks gaining.
Dubai World financial crisis might or might not impact the stock market. However the construction and the building stocks were greatly impact. Other regional market are rebounding except Singapore and Malaysia are retreating due to the stock market did not open last Friday. Hang Seng index up >3%, Nikkei 225 index and Seoul composite index up >2%. The Europe markets were rebounded last Friday after they closed more than -3% on Thursday. Due to the market direction still unclear, we don't advice to buy any stock at this stage.
