Bulls and Bears of the coming weeks

Bulls
1) US earnings are good overall
2) European financial crisis is subsided due to 1 trillion euro bailout
3) Greece and Spain problems are under control
4) US economy is improving overall

Bears
1) Bank Negara Malaysia raised another 25 basis point of interest
2) BJCorp/BJTOTO can accept bets from Worldcup 2010 or other sports games (more money will go to gambling than stock market)
3) Malaysian school holiday and World Cup 2010 are approaching fast
4) European massive bailout was unprecedented and everyone is cautious

The raise of interest rate by Bank Negara Malaysia (BNM) may not send the stock market down a lot as it was already highly anticipated and factored in manifested in recent Bursa sessions. The downside is also limited by potential raise of BLR that could spur a buying spree of properties before the hike. If there is no surprise, there is no huge market reaction. This is the rule and psychology of a stock market.

The biggest problem is still the coming World Cup 2010 and school holiday with extra spice from Sports Toto that accepts legal bets from the entire nation.

Stocks to watch? Buy at your own risk. Buy stocks that you are willing to keep for at least 3 months or you are in a good position to anticipate for a possible market slowdown ahead.