UEMLAND freefall !!!

Oil dipped below 70 and Dow was red many analyst predict current correction will take weeks if not months was right ok hold your cash tightly and also your itchy hand

This post has been edited by goognio: Jun 20 2009, 10:43 AM

Guys, pls read this article.good one

Andy Xie, former Morgan Stanley economist and current board member of Rosetta Stone Advisors shares some thoughts on the stock market rally and the Fed.

Regardless of what investors or speculators say to justify their punting, the real driving force is the return of animal spirit. After living in fear for more than a year, they just couldn't sit around any longer. So they decided to inch back. The resulting market appreciation emboldened more people. All sorts of theories began to surface to justify the market trend. Now that the rising trend has been around for three months globally and seven months in China, even the most timid have been unable to resist. They're jumping in, in droves.

When the least informed and most credulous get into the market, the market is usually peaking. A rising economy and growing income produces more funds to fuel the market. But the global economy is now stuck with years of slow growth. Strong economic growth won't follow the current stock market surge. This is a bear market rally. People who jump in now will lose big.

The dollar index-DXY has fallen 10 percent from the March level, even though the U.S. trade deficit has declined substantially. It reflects the market's expectations that the Fed's monetary policy will lead to inflation and a dollar crash. The cause of dollar weakness is the outflow of U.S. money, in my view. It is the primary cause of a surge in emerging markets and commodities. Most U.S. analysts think the dollar's weakness is due to foreigners buying less of it. This is probably incorrect.

The dollar's weakness can limit Fed policy options. It heightens inflation risks; a weak dollar imports inflation and, more importantly, increases inflation expectations, which can be self-fulfilling in today's environment. The Fed has released and committed US$ 12 trillion (83 percent of GDP) for bailing out the financial system. This massive overhang in money supply could cause hyperinflation if not withdrawn in time. So far, the market is still giving the Fed the benefit of the doubt, believing it will indeed withdraw the money. Dollar weakness reflects the market's wavering confidence in the Fed. If the wavering continues, it could lead to a dollar collapse and make inflation self-fulfilling.

The Fed may have to change its stance, even using token gestures, to assure the market it won't release too much money. For example, signaling rate hikes would soothe the market. But the economy is still in terrible shape; unemployment may surpass 10 percent this year. Any suggestion of hiking interest rates would dampen growth expectations. The Fed is caught between a rock and a hard place.

OMG H1N1 is getting worst. cases already exceed 50 and one school has been directed by goverment to close for 1 week Will Bursa also infected with H1N1 tomorrow

How about dump Air Asia, Mas, Genting , Resort etc and buy back at cheaper price

This post has been edited by goognio: Jun 22 2009, 08:23 AM

KNM 0.83

Early morning panic selling already. all goreng stock jump building

Not yet wait this afternoon

Uncle and auntie start throwing like hell. everybody damn scared

not dare to catch falling knife. very sharp ouch

SeaSink 0.695

1050 broke !!!! Can we hit 1000 this week ?

KNM 0.80 sudah letup

I already told you guys last week to quit Bursa but no one listen. actually it is not from me. got it from my remisier

A bit more to 1040

1040 gonna pecah soon !!!!!!!

Merely technical rebound. It could be M

900 - 950

Dont worry you can get 60 sen later

I already warned you guys the trend will take weeks . My target reduce from 950 to 900