Well here it is. I have been scaling back back back to just 82%-18% Cash-Equity Ratio, locking in over 4% gain since the inception of my portfolio and versus just 1.33% performance enjoyed by the KLSE.
Todays breakdown was to be expected and I put the first level of resistance right on the shoulder line at 932 which the bulls should try to maintain if they want to maintain any semblance that this is still a Bull market. Despite the impressive rise for the past 6 weeks, I still think we’re already in a Bear market. However, that does not mean that there will not be powerful spurts of retracement upwards.
Note that August is traditionally a time when liquidity dries up as international investors go on holiday. This is characterised by shoppy trading and movements up or down on low volume. Hence, it is very difficult to guage the short to medium term direction. For the next few months I will be standing aside and studying companies more than I will the markets, and hope to bring you some more company analysis.
Safe trading! And tie your hands to your chair if you need to..
