In Malaysia FBMKLCI on 21st November 2014 is currently at 1809.13 which is below the 200 DMA (200-day moving average). This indicates a bear market or what we call a downtrend. Normally, the bear trend has to run its course and eventually a bottom will be formed and a change of trend will take hold. No one is able to predict with certainty the bottom of the downtrend and so no one is able to sell all his stock portfolio to ride out the bear. Very often opportunities will surface even in a bear market because not all stocks peak or ebb at the same time. Valuation is the key while we cannot ignore momentum of the individual stocks that create trading opportunities.
As on 21st November 2014, the wholesale dumping of oil stocks is out of control. Solid companies have dropped 30% to 50% in 6 weeks.
But there's no need to panic. As Warren Buffett says: "You want to be greedy when others are fearful. You want to be fearful when others are greedy. It's that simple."
As surely as night follows day, energy stocks will rebound quickly from this massive sell-off. Join us as we seize the moment and snap up bargain buys BEFORE the market comes to its senses. Profit upsides range from 30% to 74%.
If there is an over reaction due to weak crude oil price it may have created the opportunity to eye on the fundamentally strong stocks for accumulation so that when things turn normal we may stand to gain.
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