Expect Sideways Consolidation

The Year of the Dog started off with loud barks, to the surprise of most market participants. The index went up almost 15 pts at one stage compared to the close before the long break. Our long stance has certainly paid off. It is always prudent to lock in some profits during such run ups. In the immediate term, I am now neutral. Expect a period of consolidation with intermittent ups and downs. Don't get me wrong. I am still BULLISH on the longer term. It is hard to make money on the downside unless you enjoy super low commission trading the FKLI futures. For retailers playing retail rate, be patient again, and wait for a chance to go long after this downward correction. Keep your gun powder dry! Again, this analysis is for the Composite Index KLCI and FKLI futures. Individual stocks will perform differently. There will be rotational plays for sure. So much for now. We would reevaluate the situation when more facts become available. Nothing is etched in stone, when it comes to trading. The great economist, John Maynard Keynes said, "When the facts change, I change my mind."