The Edge posted yet another article today remarking at the KLSE’s 7 week-high here. The last time they did that it dropped 2 days later by almost 30 points. That was on 12 July when I remarked that the smart money was going to push the market just slightly above the shoulder level at 932. Well, we are back at those levels today after a brief interruption by the Israel-Lebenon conflict. Now that geopolitical issues are out of the way, the sharks are getting back to the task at hand. I expect another spurt up before the fall. There are many telltale signs that the bears are sill gaining the upper hand: 1. Higher highs on weaker volumes, 2) Flight to value (defensive stocks going out). But I believe that any opportunity to offload stocks at a high price will be seized by people wanting to get out, causing liquidity to flow out of the market for the next few months. If we see strength in the next few days I will probably take the opportunity to lighten up to around 25-75%equity/cash ratio.
KLSE
