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Saturday, February 21, 2015

Correction at BursaMalaysia imminent?


With S & P 500 closing at 2,110.30 ; Dow at 18,140.44 and Nasdaq at 4,955.97 which are all near record highs many stock gurus out there are looking into their crystal balls hoping to see when the major correction is going to happen. Some say it is imminent but few say that S&P 500 still has a leg to go higher.
I am not certain who is correct but I am very certain that eventually a correction has to come.
This current super bull started sometime around March 2009. The current bull is already 6 years old and if history is to repeat itself very soon a new bear will be borne to rule supreme at least for a year or two.

As for FBMKLCI the current bull started at around 800 points and reached a high of around 1895 somewhere around July 2014. It has corrected to around 1674 in December 2014. The big question is whether this correction is good enough or more bad days a ahead. No one knows.

A good strategy maybe is to sell into strength (if any) and hold more cash so that in the event the bear comes we can do some cherry picking.