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Saturday, August 6, 2011

Malaysia Stock Market - Sentiment Index

Asian shares succumbed to heavy selling Friday, while the euro and other risk-sensitive currencies were knocked hard, amid intensifying worries European debt problems and U.S. economic woes could tip the global economy into a double-dip recession.

"The conventional wisdom on Wall Street was that the economy was growing -- that the worst was behind us," said Peter Schiff, president of Euro Pacific Capital. "Now what people are realizing is the stimulus didn't work, and we may be headed back to recession."

Local sentiment sank into deep sorrow as the key index once lost more than 36 points. The Intra-day Oscillator opened with nearly 6,000 points negative but gradually recouped some losses to end off low at -3,547.08; gained 2,390.94 when compares with its starting point. The Average recorded a loss of 4,036.13.

At the end of the day, %K(yellow) of MSCD recorded as -772.84 (-593.11), %D(red) -456.06 (-286.51) and the Histogram -77.52 (-59.81). Both indicators tumbled and the Histogram printed a long negative bar.

Well, the warning was issued too weak and too late. The crash came sooner as expected. At this juncture, one needs no further elaboration for the market situation as the MSCD tells it all.

Though US market has recovered a bit last night (+61 pts) but the support was not firm enough to implicate any reversal. The uncertainty remains as Standard & Poor's rating agency announced Friday that it has downgraded the U.S. credit rating to AA+ from its top rank of AAA. 

Our market has been deeply wounded and needs a long time to recover. However, some research houses have issued advice of “Bargain Hunting”. 

Constructed and Written by Smartbiz

(Note: You can read the explanation for Intra-Day MSO and MSCD from the achieves under heading "Labels" at the lower portion of the sidebar.)

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