Super bull has started

Investors in the KLSE will probably feel elated after the big rally across the Board spilled over the shortened three days trading after the Chinese New Year public holidays. On Wednesday – the first day of trade – many low liners rallied. As expected, retailers jumped on the band wagon chasing these shares higher. The value traded exceeded RM 4 billion for the day. The shares of stockbrokers were in great demand on Thursday because of their re-rating, what with the triple or fourfold increase in daily values of trade over that of 2006 (think commissions). Each stockbroker has announced very good profits for 2006 and many gave staff six months’ bonuses. Little wonder, many of their share prices tripled or went up fourfold from their lows in 2006.

If investors had bought or held on to these shares last year and sold them on Thursday – after the Chinese New Year holidays – they would have received a windfall in their red packets within the fifteen days of CNY. This would clarify why one had in two earlier entries indicated – expect a big ‘angpow’ after CNY and not before – and surely the Chinese understands that red packets are usually given during the fifteen days of the Spring Festival. Those who had sold shares or did not buy any before CNY will certainly rue their decisions.

Therefore it is nonsense to say that one was not clear enough when writing the previous two entries. Just because there are some who had chosen to follow some chartists and Fengshui masters who expected a correction before CNY has nothing to do with my Yi charts and oracles. I am neither a fortune teller nor a Fengshui master. One cannot see beyond what the Yi tells me. Therefore stop passing the buck for your own indecisions or missteps.

1993 was a bull run in Asia including Malaysia. My Yi hexagram table and charts were drawn up then and fine-tuned in 1996 – a smaller bull run. It appears that this week’s performance of some shares had flown much higher than expected from indications of the divined hexagrams. Slight overruns are expected but not huge increases. (See entries on ‘Do not chase after the horse’.) One had already re-rated the 64 hexagrams investment chart in my mind. Coupled with a comment from a heavenly immortal, a fortnight ago, it looks like 2007 would be a super bull for the KLSE.

Technical analysis or charting can be thrown out of the window if the super bull happens. Buy into stocks that have good fundamentals and investors would be safe from the expected huge volatility in share prices. (The reason investors have to do their homework.) Share prices that jumped up too fast will also come down much when profit taking sets in, as witnessed on Thursday and Friday. Some shares prices have already fallen 20% within a day or two from their year highs reached on Thursday morning.

Therefore be careful, one had seen enough people losing money in bull runs especially those who tend to chase speculative stocks and lose their cool. Never gamble under a hot temper. In the heat of the moment, many a punter had lost a fortune.

When a divined hexagram indicates the price of a share to increase only by a third, but it more than doubled, the investment chart is not wrong – the chart has to be re-rated upwards (changing with the times). Since a Quanzhen heavenly immortal has also indirectly chipped in, investors can look forward to a Super Bull run in the KLSE this year.

How much you win and how much you lose is based entirely on your own decision and temperament. There is no spoon feeding in this blog and if you cannot win money in a super bull run, put it down to bad luck or fate. Never try to pin the blame on me again. I reiterate that I am not responsible for anyone's fate or fortune.

Unhappy investors and/or readers can always look elsewhere or ask for KLSE tips from the ShenXian (Daoist deities and immortals). One is just as happy writing for many other readers who find something worth their while reading this blog.