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Wednesday, 20 November 2013

Market overview 20 Nov2013

Market overview 20 Nov2013

Fundamental 

  • Wall street retreated from historical high as investor wait for Fed release meeting minutes.
  • Janet Yallen thinks that the quantitative easing should continue given that economy still fragile.
  • Beware, stock market could see a big drop because earning at many companies fueled by low borrowing cost rather than strength of the management.
  • KLCI closed high yesterday supported by local funds pushing up KLCI counters.


Technical

  • Volume divergence can be noticed on Dow Jones index as the price traded at all time high while volume declining, correction is imminent. 
  • On yesterday closing, KLCI penetrated 30 days moving average followed by high trading volume. RSI hooking up indicate strong buying interest. 
  • MACD on the verge of positive crossover, it specify short term rebound (as report earlier) will continue.
  • From my point of view, there will be a pull back before year end rally.


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