I just thought of something and I'd like to share with you guys. Give me your feedback.

I went to a free preview talk by one of the local traders. She said her trading strategy is to follow the money. Follow the money means following Foreign Funds. From my memory, this is how it works. FF will come in to buy the shares... then goreng it up. At high price, it will slowly sell 80% of its shares. Then the last 20%, it will sell aggressively to make the price fall alot. Small investors will get scared and follow to sell. Then when time is right, the FF will start buying up cheaply again.

I don't know if what she said is true or not. But if it is true, then maybe our market hasn't bottomed yet. This depends on what the FF wants to do.

A few weeks ago, The Star pointed out that the FF has less than 20% equity in the stock market. If what the speaker said is true, then will the FF use this last bit of shares to sell down the market?

Look at Oct 2008. Our market crashed. Many counters price dropped alot. The problem is, at that time, the FF were selling because they wanted to repatriate the capital back to US. Not because they wanted to profit. So even when prices were low, they still sold.

The speaker's analogy: Sell 80% to take profit, then sell 20% to crash the market.
What happened: Sold lots of shares to repatriate capital back to US. Now left with less than 20% equity.

What will the FF going to do with the remaining shares? Will they sell down the market, or will they sell these remaining shares at the best price they can get to minimize their losses or maximise their profit? Remember, they didn't profit enough when they sold their earlier shares.

If FF take first action, then market hasn't bottomed yet. If FF takes second action, then likely market has already bottomed.

This post has been edited by simplesmile: Apr 9 2009, 02:02 PM

I think PNB is smarter than FF. They are collecting now.

When FF come, PNB would sell to them at double the price.

The last time, I saw PNB sold KLK at rm15 a piece.

Judge your own.

i doubt it the local market will be hoodwinked by FF especially when they only control 20% of the equity market for the time being...

With ample amunition in stock from the 2nd stimulus pack, soverign funds like EPF, ValueCrap aand so on may have sufficient funds to discourage such attemps to deliberately manipulate the market (on a grand scale).

this is however the reverse in the futures market.

simplesmile:

by the way good call on LCL, any thoughts of cashing in yet

This post has been edited by aurora97: Apr 9 2009, 02:10 PM

To certain extent it is true.

They sold Genting aggressively down. Resort World could be another.

When they left, Genting bounces back.

I don't think FF are so co-ordinated in their action. Maybe if only one major FF in the market, then they can manipulate or if they target specific counters. I think the case of selling/buying in the whole market more like a herd movement thing rather than co-ordinated effort to crash the market

1997/98. It was co-ordinated, well planned in ahead.

But History is not a favorite subject nowaday

This post has been edited by SKY 1809: Apr 9 2009, 02:23 PM

I cashed out LCL @0.57 today. Waiting to buy back @0.56 but seems like it's not coming down. Unlike yesterday, it was yo-yo up and down. Let's see if it comes down tomorrow. If my plan works out, I end up with an extra 600 shares.

did you know that genting is losing money in overseas such as england?

I like your 4 years plan, though.

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Added on April 9, 2009, 2:26 pmDid you know the price go up ?

I prefer Genting than Citigroup, if given a choice.

One is a gold mine and the other is a LAKE.

This post has been edited by SKY 1809: Apr 9 2009, 02:28 PM

yeah i knew that and i think they stop losing money

If you are thinking about FF. Goldman Sachs sold E&O recently

They could be the King of Casinos, if the rests go bust one by one.

oh look the market is taking off..

look forward to a crash tomorrow.. keke..

This post has been edited by aurora97: Apr 9 2009, 02:43 PM

May depend on the new cabinet announcements

If we look at bjcorp recently goldman sachs has been acquiring shares and vincent tan has been disposing. Not sure whether goldman sachs r still buying now contribution to the price increase??

... my gut feeling lo... ....

c her mother.. genting---- fly~

sometimes its hard to say whether it is actually Goldman whose buying or selling, to tell you the truth if your rich enough and your a big enough bank... you don't have to reveal your underlying client.

So the front cover may be Goldman, but the person pulling the strings may be vincent tan

especially prevailant in Omnibus accounts.

This post has been edited by aurora97: Apr 9 2009, 02:57 PM

wad happen to klse? shoot up so high 1?

Hmm... isnt that money laundering & against the law somewhere ?

look at bjcorp go...